What is the difference between comparative advantage and absolute advantage?

What will be an ideal response?

Absolute advantage refers to the ability to produce a good with fewer total resources. Comparative advantage is the ability to produce at the lower opportunity cost. A comparative advantage exists when one has to give up fewer units of the other good than another person or country.

Economics

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An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output

a. True b. False Indicate whether the statement is true or false

Economics

Figure 3-22



Economics