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The United States Has Developed a Comparative Advantage in Digital

question 83

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The United States has developed a comparative advantage in digital computers,airliners,and many prescription drugs.The source of its comparative advantage in these products is


Definitions:

Liability Rules

Legal principles that define the obligations of parties to compensate for damages or losses they have caused.

Compensate

To make amends or give an equivalent to someone for loss, damage, or suffering experienced.

Free-Rider Problem

A situation where individuals consume a good or service without paying for it, especially in the context of public goods.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without depleting and without preventing others from consuming it.

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