The Purchase of a New Jet by Damon Airlines Inc

question 43

Multiple Choice

The purchase of a new jet by Damon Airlines Inc. is an example of a(n) _____ purchase.

• A) specialty good
• B) component part
• C) installation
• D) supply

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Definitions:

Adam Smith

An 18th-century economist known for his writings on classical economics, including the concept of the division of labor and the benefits of free markets.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than competitors using the same amount of resources.

Comparative Advantage

An economic theory that suggests a country should produce and export goods in which it has a lower opportunity cost than other countries.