Circular-Flow Diagram Quiz
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Questions and Answers

Which term refers to the uncontested superiority of a country or business to produce a particular good better?

  • Opportunity cost
  • Absolute advantage (correct)
  • Comparative advantage
  • Production diversification
  • What does comparative advantage introduce as a factor for analysis in choosing between different options for production diversification?

  • Particular goods
  • Absolute advantage
  • Opportunity cost (correct)
  • Uncontested superiority
  • What do absolute advantage and comparative advantage largely influence?

  • The production of particular goods
  • Analysis of different options for production diversification
  • How nations and businesses devote resources (correct)
  • The uncontested superiority of a country or business
  • Which one of these factors is NOT introduced by comparative advantage?

    <p>Uncontested superiority</p> Signup and view all the answers

    What does absolute advantage refer to?

    <p>The uncontested superiority of a country or business</p> Signup and view all the answers

    What does comparative advantage introduce as a factor for analysis?

    <p>Opportunity cost</p> Signup and view all the answers

    What is the primary focus of absolute advantage and comparative advantage?

    <p>The production of particular goods</p> Signup and view all the answers

    Which one of these terms refers to the factor of opportunity cost?

    <p>Comparative advantage</p> Signup and view all the answers

    What does comparative advantage introduce for analysis?

    <p>Opportunity cost</p> Signup and view all the answers

    What does absolute advantage introduce as a factor for analysis?

    <p>Uncontested superiority</p> Signup and view all the answers

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