The notion that specialization in goods that one can produce at a low opportunity cost will make it possible for trading partners to produce a larger joint output is called
A) the law of absolute advantage.
B) the law of comparative advantage.
C) the law of production possibilities.
D) the exchange maximum principle.
Correct Answer:
Verified
Q79: Figure 2-10 Q80: Three basic decisions must be made by Q81: Which of the following appropriately applies the Q82: According to the law of comparative advantage, Q83: The law of comparative advantage explains why Q85: Michael takes 10 minutes to iron a Q86: Opportunity costs differ among nations primarily because Q87: Ashley is an attorney and also an Q88: The size of a country's "economic pie" Q89: The law of comparative advantage implies that
A)
A)
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