According to the Theory of Comparative Advantage;a Good Should Be

question 57

Multiple Choice

According to the theory of comparative advantage;a good should be produced in that nation where

• A)the production possibilities line lies further to the right than the trading possibilities line.
• B)its cost is least in terms of alternative goods that might otherwise be produced.
• C)its absolute cost in terms of real resources used is least.
• D)its absolute money cost of production is least.

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Definitions:

Buy and Sell

The basic actions in trading and investing where "buy" refers to acquiring an asset, and "sell" indicates disposing of an asset.

Bid-Asked Spread

The difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.

Broker's Commissions

Fees charged by a broker for executing transactions or providing specialized services.

Price Concessions

Discounts or adjustments in the price of a good, service, or security, often granted to finalize a deal.