Trade Occurs When a Country Has an Absolute Advantage and Not

question 125

True/False

Trade occurs when a country has an absolute advantage and not just a comparative advantage over another country.

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Definitions:

Labor Productivity

A measure of economic performance that compares the amount of goods and services produced with the number of hours worked.

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Consumption Rate

The speed at which goods or services are being used or consumed by consumers.

Marginal Product

Marginal product refers to the additional output resulting from using one more unit of a production input, such as labor or capital, holding other inputs constant.