Asked by Lesley Figueroa on May 05, 2024
Verified
If one person has an absolute advantage in producing both of two goods,then that person:
A) must also have a comparative advantage in both goods.
B) cannot benefit from trade.
C) cannot have a comparative advantage in either good.
D) will have a comparative advantage in only one good.
E) should specialize in the production of both goods.
Absolute Advantage
The ability of a party (country, company, individual) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.
Comparative Advantage
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient trade possibilities.
Specialize
Refers to the process of focusing on a specific area of knowledge or skill within a broader field.
- Master the concepts of absolute and comparative advantage as applied to economic transactions.
- Contrast the theories of absolute advantage and comparative advantage.
Verified Answer
Learning Objectives
- Master the concepts of absolute and comparative advantage as applied to economic transactions.
- Contrast the theories of absolute advantage and comparative advantage.
Related questions
If Monica Has a Comparative Advantage in Baking and George ...
If Sam Can Chop Up More Carrots Per Minute Than ...
In a Single Day,George Can Bake 10 Cakes and Greta ...
The Law of Comparative Advantage States That the Person Who ...
If They Spend All Night Writing Computer Programs,Laurence Can Write ...