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Use the Following to Answer Question

question 183

Multiple Choice

Use the following to answer question: Use the following to answer question:   -(Scenario: The Production of Wheat and Toys) Use Scenario: Production of Wheat and Toys.Country A has an absolute advantage in _____ and a comparative advantage in the production of _____. A) toys;wheat B) toys;toys C) wheat and toys;wheat D) neither good;toys
-(Scenario: The Production of Wheat and Toys) Use Scenario: Production of Wheat and Toys.Country A has an absolute advantage in _____ and a comparative advantage in the production of _____.


Definitions:

Service

Economic activity where an intangible value is provided, such as healthcare, education, or entertainment, as opposed to producing a tangible product.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other falls, and conversely with an increase of price.

Equilibrium Price

Equilibrium Price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

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