Opportunity cost of a decision is only the next best option not all of them
100
Name the 4 criteria in the National Competitive Advantage
1. Factors of endowment
2. Demand conditions
3. Related and supporting industries
4. Firm strategy, and rivalry
100
Community Lost
Opportunity Cost
100
What does R&D stand for?
Research and Development
200
What was the title of the book that Adam Smith wrote
What is the Wealth of Nations
200
What is comparative advantage?
the capacity of one economy to produce a good with comparatively fewer resources than another
200
Demand Conditions - A country will have a competitive advantage if domestic _______________ are sophisticated and demanding.
Consumers
200
Divisible Land
Invisible Hand
200
What does GDP stand for?
Gross Domestic Product
300
Fill in the blank
"Self correcting system governed by the laws of ___________ and ___________"
What is supply and demand
300
On Saturday night I have to decide what do with my time. I decide in order what my best options are:
1) Birthday party for my Grandmothers 75th Birthday
2) A rad party from a girl at school
3) do school work
What is my opportunity cost
A rad party from a girl at school
300
In factors of endowment, what is considered as an advanced factor
skilled workers, communication systems, infrastructure
300
Unbearable Mismanage
Comparable Advantage
300
Name 3 ways a company can achieve competitive advantage?
1. Market share and performance (compared to its competitors
2. Channel of Distribution
3. Customer demand
4. Customer Loyalty
5. Skilled and knowledgeable workers
400
What is absolute advantage
the capacity of one economy to produce a good with fewer resources than another
400
Country A
The opportunity cost of one Computer is:
0.5 Pounds of Meat
The opportunity cost of pounds meat is:
2 Computers
Company B
The opportunity cost of one Computer is:
2 Pounds of Meat
The opportunity cost of pounds of meat is:
0.5 Computers
How has the Comparative advantage in Meat
What is Country B
400
How is the Diamond theory self reinforcing?
They are all interdependent of one another. Example Customers can be demanding but companies will not respond with out competition
400
Made it Leonardo
David Ricardo
400
When country Blue produces a good at a lower opportunity cost than Country Red, Country Blue is said to have:
a) A comparative advantage
b) An absolute advantage
c) A big advantage
d) A trade advantage
A comparative advantage
500
Describe the following statement "An individual is led by an invisible hand to promote an end which was no part of his intention... By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it…"
In the end people will do things for themselves even though it was not there original intention from the beginning
500
Country A Country B
1 Computer = 2 pounds of > 1 Computer = 1 pounds of
meat meat
Should Country A trade? If so what and how much would you gain from this trade
Yes trade. You will gain 1 pound of meat
500
Explain 2 reasons how the government can help the Porter Diamonds Theory.
1. Product Standards (Canadian Standard Association)
2. Develop advance factors of production (Research, Infrastructure)
3. Encourage Rivalry (Anti Trust Laws)
4. Stimulate demand for advanced products (Tax rebates)
500
Elf Endorsing
Self reinforcing
500
How can R&D improve a countries competitive advantage?
The greater the technology, the more productive a country can be.