What does it mean for a person or nation to have a comparative advantage in producing a product?
What will be an ideal response?
Having a comparative advantage means the person or nation has the ability to produce the product at a lower opportunity cost than another person or nation.
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Which of the following will lead to a depreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports B) an increase in U.S. interest rates C) a decrease in British demand for U.S. assets D) a decrease in U.S. demand for British goods
Which of the following states the definition of supply?
A. More of a good is supplied at a lower price. B. There is a positive relationship between the price of a good and the quantity that buyers want to purchase. C. There is a positive relationship between the price of a good and the quantity offered for sale by suppliers. D. There is a negative relationship between the price of a good and the quantity offered for sale by suppliers.