Comparative Advantage Is Directly Related to Which of the Following

question 146

Multiple Choice

Comparative advantage is directly related to which of the following concepts?

• A) productivity
• B) efficiency
• C) opportunity cost
• D) competition
• E) fairness

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Definitions:

Cross-price Elasticity

A measure of how the demand for one good changes in response to a change in the price of another good.

Substitutes

Goods or services that can be used in place of each other, having the ability to satisfy similar needs or desires.

Cross-price Elasticity of Demand

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Quantity Demanded

The specific amount of a good that consumers are willing and able to buy at a given price.