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When One Nation Is Less Efficient Than Another Nation in the Production

question 41

Short Answer

When one nation is less efficient than another nation in the production of each of two goods,the less efficient nation has a ____________ in the production of that good for which its absolute disadvantage is less.


Definitions:

Eugene Fama

An American economist and Nobel laureate known for his work on the efficient-market hypothesis.

Risk-Adjusted Performance

A measure of how much risk is involved in producing a financial return, used to compare the performance of investment portfolios.

Comparison Universe

A benchmark or pool of investments used to evaluate the performance of a specific investment or portfolio.

Mutual Funds

Professionally managed investment initiatives that are bankrolled by stockholders and trade across assorted holdings.

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