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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

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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:

  1. Free Trade
  2. Barriers
  3. Comparative Advantage
  4. 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.

This problem has been solved

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