According to the Theory of Comparative Advantage

question 96

Multiple Choice

According to the theory of comparative advantage:

• A) a nation should produce those goods which it is more efficient at producing than are other nations.
• B) a nation can gain from trade if it is equally inefficient in producing two goods.
• C) a nation must have an absolute advantage in at least one good to gain from trade.
• D) all of the above.
• E) none of A, B, or C.

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Definitions:

Job-Based Pay

A compensation strategy that determines an employee's salary based primarily on the specific job or position they hold.

Competency-Based Pay

Pay based on an employee’s skill level, variety of skills possessed, or increased job knowledge

Hay Profile Method

A job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions.

Market Pricing

The practice of setting salaries based on the prevailing wage rates for similar positions in the external labor market.