FIGURE 14-7 -Refer to Figure 14-7.Which Point Shows That the Bottom 60

question 38

Multiple Choice

FIGURE 14-7
-Refer to Figure 14-7.Which point shows that the bottom 60% of families earn just under 40% of total income?

• A)A
• B)B
• C)C
• D)D

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, facilitating beneficial trade and specialization.

Absolute Advantage

The ability of a party to produce more of a good or service than competitors, using the same amount of resources.

Free Trade

The absence of tariffs, quotas, or other governmental restrictions on international trade, allowing goods and services to move freely across borders.

Opportunity Cost

Signifies the advantages that a person, investor, or company forgoes by selecting one option instead of another.