According to the Theory of Comparative Advantage

question 148

Multiple Choice

According to the theory of comparative advantage:

• A) every country can produce some good with a lower opportunity cost.
• B) every country should produce goods that involve high opportunity costs.
• C) some countries have a comparative advantage in producing every good.
• D) some countries should import every good from other countries.

Understand the concept and limitations of an agent's authority in transactions.

Identify circumstances under which a principal is directly liable in tort cases.

Analyze the implications of a principal's indirect liability through the actions of an agent.

Distinguish between express, implied, and apparent authority in agency relationships.

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Definitions:

Production Possibility Frontier

A curve depicting the maximum feasible amounts of two goods that can be produced with available resources and technology.

Economic Growth

A growth in an economy's ability to produce goods and services when comparing one time period to another.

Outward Shift

A movement of a curve away from the origin on a graph, typically indicating an increase in supply or demand.

Comparative Advantage

The proficiency of an individual or group in executing a certain economic function more effectively than other tasks.