nul QUESTION 16 According to the theory of efficient producers than o specializa
ID: 1141013 • Letter: N
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nul QUESTION 16 According to the theory of efficient producers than o specialization and free trade will benefit all trade partners, even when some are absolutely more O a comparative advantage b social equity absolute advantage O d l laissez-fare QUESTION 17 If you own a condo and you decide to lease it to your cousin O b the only cost relevant to is the price C there is no opportunity cost of d there is an opportunity leasing the condo because you collect rent from your cost of leasing the condo because you could have chosen to live in it cost of leasing the condo this you paid for the condo QUESTION 18 The process of using resources to produce new capital isExplanation / Answer
The theory of absolute advantage says that the trade will happen when a country has absolute advantage in production of a particular good. That is if the country uses less resources to produce more of a good than the other nation, we say the country has absolute advantage in producing that good.
If you own a condo and you decide to lease it to your cousin there is an opportunity cost of leasing the condo because you could have chosen to live in it. If you yourself would have lived in it it the opportunity cost of you living in it will be the rent you receive from your cousin.
The process of using resources to produce new capital is known as investment.
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