Consumption and Investment Fall When There Is a Stock Market

question 73

Multiple Choice

Consumption and investment fall when there is a stock market

• A) merger.
• B) split.
• C) boom.
• D) crash.

---

Definitions:

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than others, enabling trade benefits.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same resources.

Absolute Advantage

The ability of a country, individual, or firm to produce a good more efficiently than another entity, using fewer resources.

Fewer Resources

A situation or condition where there is a reduced availability of inputs or factors of production such as land, labor, and capital.