Find the word that does not fit in the group:*1 pointfree tradebarrierscomparative advantageabsolute advantage
Question
Find the word that does not fit in the group:
- free trade
- barriers
- comparative advantage
- absolute advantage
1 point
Solution
1. Break Down the Problem
We need to identify which term among the given options does not align with the others. The terms given are:
- Free Trade
- Barriers
- Comparative Advantage
- Absolute Advantage
2. Relevant Concepts
- Free Trade: The unrestricted purchase and sale of goods and services between countries.
- Barriers: Usually refers to trade barriers that restrict international trade.
- Comparative Advantage: An economic theory that explains how countries can gain from trade by specializing in goods they can produce more efficiently than others.
- Absolute Advantage: The ability of a person or group to carry out a particular economic activity more efficiently than another individual or group.
3. Analysis and Detail
- Free Trade and Barriers: Free trade promotes international exchange, whereas barriers inhibit it. They are opposing concepts.
- Comparative and Absolute Advantage: Both terms relate to theories of trade and economic efficiency.
4. Verify and Summarize
When we analyze the terms, "barriers" is the only one that represents a limitation on trade, while the others facilitate or define trade relationships.
Final Answer
Barriers does not fit in the group as it represents a restriction on trade, whereas the others are associated with trade benefits.
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