Comparative Advantage Is Based on the

question 33

Multiple Choice

Comparative advantage is based on the

• A) concept that some countries are superior to others.
• B) concept of absolute advantage of producing goods in different countries.
• C) concept of relative opportunity cost of producing goods in different countries.
• D) concept that some countries are better endowed with natural resources.

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Definitions:

Completing the Square

A method used in algebra to solve quadratic equations by converting the equation into a perfect square trinomial.

Completing The Square

A method used to solve quadratic equations by adding a constant term to both sides to form a perfect square trinomial.

Compounded Annually

The process of calculating interest on both the initial principle and the accumulated interest of previous periods once per year.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.