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Figure 3-H
-Refer to Figure 3-H.A movement from S1 to S2 could occur if:
Scarce Factors
Resources that are limited in availability and are constraint to economic production.
Capital
Refers to financial assets or physical resources that are used in producing goods or providing services.
Absolute Advantage
The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.
Comparative Advantage
An economic principle stating that countries or entities gain and benefit from trade when they specialize in producing goods for which they have a lower opportunity cost than their trading partners.
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