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Even Though Person a Has an Absolute Advantage Over Person

question 60

Essay

Even though person A has an absolute advantage over person B both at producing good X and at producing good Y,it can still make sense for persons A and B to engage in trade involving goods X and Y.Explain why this is so.


Definitions:

Financial Aid

Monetary assistance provided to individuals, especially students, to help cover expenses such as tuition, books, and living costs.

Democratic State

A form of government in which power is held by elected representatives and/or directly by the people, characterized by free and fair elections, and the protection of civil liberties.

Modern Democracies

Refers to political systems where citizens have the power to make decisions about government policies and leaders through free and fair elections.

Controlling State

A government that exercises extensive or over-reaching control over the political, economic, and social life of its citizens.

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