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which of the four options best represents specialization and its relationship with trade? absolute advantage economic crises comparative advantage all the above

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter20: The Global Economy

Section: Chapter Questions

Problem 5AA

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Unfavorable Balance Of Trade

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Question

which of the four options best represents specialization and its relationship with trade?

absolute advantage

economic crises

comparative advantage

all the above

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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