Comparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products.
Q. Which of the following are examples of limited resources on the part of consumers?
Time and money are examples of limited resources on the part of consumers. Explanation: The essential monetary issue of shortage is that there are restricted assets of an item or a crude material that is required to make products. The ramifications of shortage are that individuals should abandon the item that is rare.
Table of Contents
- Q. Which of the following are examples of limited resources on the part of consumers?
- Q. What is the fundamental problem producers and consumers face?
- Q. Which scenario can be considered effects of Sole Sister shoe store?
- Q. What is a graphical representation of the combination of goods and services that can be produced in a situation production possibility curve?
- Q. How does a production possibility Chart assist?
- Q. What is demonstrating opportunity cost is done through production?
- Q. What illustrates an opportunity cost?
- Q. What forces businesses industries and governments to make decisions?
- Q. What forces businesses to make decisions?
- Q. What are the four types of economic systems?
- Q. What is the best type of economic system?
Q. What is the fundamental problem producers and consumers face?
The fundamental problem producers and consumers face is scarcity. The term scarcity denotes the economic problem that societies do not have enough productive resources to produce everything people want.
Q. Which scenario can be considered effects of Sole Sister shoe store?
High school athletes stop shopping there and the inventory of sports socks goes unsold can be considered effects of sole sister shoe store choosing to sell dress shoes over the sneaker. Further Explanation: The company chooses to sell dress shoes over sneaker shoes.
Q. What is a graphical representation of the combination of goods and services that can be produced in a situation production possibility curve?
(also called a production possibilities frontier) a graphical model that represents all of the different combinations of two goods that can be produced; the PPC captures scarcity of resources and opportunity costs.
Q. How does a production possibility Chart assist?
How does a production possibility chart assist in outlining opportunity cost? It compares profit potential of one product to another. It compares consumer demand of one product to another. It compares production numbers of one product to another.
Q. What is demonstrating opportunity cost is done through production?
Demonstrating opportunity cost is done through production: analysis.
Q. What illustrates an opportunity cost?
Opportunity cost can be illustrated by using production possibility frontiers (PPFs) which provide a simple, yet powerful tool to illustrate the effects of making an economic choice. A PPF shows all the possible combinations of two goods, or two options available at one point in time.
Q. What forces businesses industries and governments to make decisions?
What forces businesses, industries, and governments to make decisions? consequences.
Q. What forces businesses to make decisions?
Answer: Scarcity is what forces organizations to make decisions and is the most influential factor in decision making.
Q. What are the four types of economic systems?
Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.
- Traditional economic system.
- Command economic system.
- Market economic system.
- Mixed system.
Q. What is the best type of economic system?
A free and competitive market economy is the ideal type of market economy, because what is supplied is exactly what consumers demand. Price controls are an example of a market that is not free.
