MGT491H5 Midterm: Midterm Study Notes - Chapter 6-The Political Economy of International Trade

35) An economic system will occasionally choose to concentrate its factors of production on producing some products rather than others. Through concentration and specialisation, it can make the chosen products better or more cheaply than other countries can. This is known as: a) b) trade specialisation economic concentration absolute advantage comparative advantage

32) Which of the following best describes the term gross domestic product? a) total value of all goods and services produced within a given period by a national economy through domestic factors of production total quantity of goods and services produced by an economic system conditions of the economic system in which an organization operates total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located