If a Country Specializes in Goods That It Can Produce

question 90

Multiple Choice

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising which of the following principles?

• A) distinctive advantage
• B) comparative advantage
• C) absolute advantage
• D) parallel competencies

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Definitions:

Mature Consumers

Individuals, typically aged 55 and older, with distinct consumer habits and preferences shaped by their life experiences.

Homogeneous Market

A market composed of consumers or buyers with similar needs, interests, and characteristics, making it easier to target with specific products or marketing strategies.

Enthusiastic Customers

Individuals who are highly satisfied and passionate about a brand or product, often promoting it voluntarily.

New Economy

An economy based on digital technologies, emphasizing information, knowledge, and innovation.