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Zhane Collins
on Nov 05, 2024

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According to the theory of ________, specialization and free trade will benefit all trade partners, even when some are absolutely more efficient producers than others.

A) comparative advantage
B) absolute advantage
C) social equity
D) laissez-faire

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors. This concept is one of the fundamental principles of economics that helps explain the gains from trade.

Absolute Advantage

The capacity for a person, business, or nation to create a product or offer a service with a per-unit expense that's beneath the cost any other party can achieve for that same product or service.

  • Understand the contribution of specialization and trade to the enhancement of economic efficiency and production levels.
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DP
Daniel PittnerNov 07, 2024
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