Comparative Advantage

Question 1

It means producers can produce a good or service at a lower opportunity cost than others.

Answer 1

Comparative Advantage

Question 2

Lost or missed out on when choosing one possibility over another.

Answer 2

Opportunity cost

Question 3

Theory of comparative advantage was formulated by?

Answer 3

David Ricardo

Question 4

It is an economic system in which trade, industry and capital are privately controlled and operated for profit

Answer 4

Industrial Capitalism

Question 5

Ricardo developed ___________, the theory or practice of controlling the supply of the money as the chief method of stabilising the economy.

Answer 5

Monetarism

Question 6

It states there is a point in production where the increased output is no longer worth the additional input.

Answer 6

Law of Diminishing Marginal Returns

Question 7

It compares the productivity of different entities or countries.

Answer 7

Relative productivity

Question 8

Also called the factor proportions theory or resources and Trade theory

Answer 8

Heckscher-Ohlin Theory