Asked by Mariela Nieto on May 31, 2024
Verified
If a nation has a comparative advantage in the production of X, this means the nation
A) cannot benefit by producing and trading this product.
B) must give up less of other goods than other nations in producing a unit of X.
C) has a production possibilities curve identical to those of other nations.
D) is not subject to increasing opportunity costs.
Comparative Advantage
The principle that holds a party can produce some goods at a lower relative cost than another, promoting beneficial trade.
Other Goods
The term refers to any goods that are not directly under consideration but can still affect the market situation, such as substitute or complementary goods.
Increasing Opportunity
Increasing opportunity involves the growth or expansion of choices and avenues through which individuals or organizations can achieve desired goals or outcomes.
- Acquire knowledge on the core principles of international commerce and the idea of comparative advantage.
- Gaining knowledge of the groundwork and limitations for beneficial exchanges among countries.
Verified Answer
Learning Objectives
- Acquire knowledge on the core principles of international commerce and the idea of comparative advantage.
- Gaining knowledge of the groundwork and limitations for beneficial exchanges among countries.
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