What Does It Mean for a Country to Have an Absolute

question 120

Essay

What does it mean for a country to have an absolute advantage in producing a product?

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Definitions:

Tariff

A tax imposed by a government on imports or exports of goods to regulate trade and protect domestic industries.

Imported Oil

Oil that is brought into a country from another for use or sale.

Quantity Demanded

The total amount of a good that consumers are willing and able to purchase at a given price, holding all other factors constant.

Price Ceiling

A legal maximum price that can be charged for a good or service, usually set by the government.