What is meant by the term "comparative advantage"? How is it different from absolute advantage?
What will be an ideal response?
Comparative advantage is the ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than other producers. Absolute advantage, on the other hand, is the ability of an individual, firm, or country to produce more of a certain good than other competing producers, given the same number of resources.
Economics
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Price elasticity of demand basically measures
A) the reliability of a product. B) the responsiveness of consumers to price changes. C) the variability of price changes. D) the percentage change in market price as a result of a change in demand.
Economics
A tax imposed on imported goods is
A. A tariff. B. An embargo. C. An example of fiscal policy. D. A quota.
Economics