The Idea of Reorganizing Unequal Global Trade in a Way

question 9

Multiple Choice

The idea of reorganizing unequal global trade in a way that minimizes inequalities is called:

• A) equal trade
• B) honest consumption
• C) fair trade
• D) neoconsumption

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

Opportunity Cost

A different way to describe it would be the cost of missing out on the benefits of the second-best option when a choice is made.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, demonstrating the concept of opportunity cost.