Different Topics

Question 1

Absolute advantage

Answer 1

One country can produce more of a good than others with the same amount of resources

Question 2

Comparative advantage

Answer 2

One country can produce a good at a lower opportunity cost than another country

Question 3

Principle of comparative advantage

Answer 3

When countries specialise in producing goods in which they have a lower opportunity cost, their combined output will be maximised.

Question 4

Output (resoucres X info X allocated resources)

Answer 4

With the same amount of resources, a country can produce more outputs

Question 5

Input (Resources ➗info) X allocation

Answer 5

With the same amount of outputs, a country can produce them with less resources

Question 6

Gross domestic product

Answer 6

Measures the market value of all final goods and services produced by resident producing units of an economy in a period of time .

Question 7

The three transfer

Answer 7

Current transfer (donate to other countries)
Transfer payment (provided government)
Wealth payment (exchange from one account to another)