Absolute Advantage Is

question 47

Multiple Choice

Absolute advantage is

• A) the ability to produce more output from given inputs than another producer can.
• B) the ability to produce a good at a lower opportunity cost than other producers.
• C) is always a relative concept.
• D) the ability to produce all goods at lower costs than anyone else can.

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Definitions:

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as an annual percentage of the principal amount.

Simple Interest

A way of calculating interest where the interest charge is based on the original principal only and does not compound.

Repaid

The action of paying back borrowed money to a lender, either in installments or as a lump sum.

Loans

Sums of money borrowed that are expected to be paid back with interest, often under agreed-upon terms between lenders and borrowers.