Asked by Hazeline Sutana on Apr 24, 2024
Verified
In a single year,the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Belgium can raise 50 tons of beef or produce 750 boxes of tulips.From this information,we know that:
A) the Netherlands has a comparative advantage in raising beef.
B) the Netherlands has a comparative advantage in raising tulips.
C) Belgium has a comparative advantage in raising beef.
D) Belgium has an absolute advantage in raising beef.
Comparative Advantage
The ability of an entity to produce goods or services at a lower opportunity cost than others, which is the basis for specialization and trade.
Netherlands
A country located in Northwestern Europe, known for its flat landscape, extensive canal systems, tulip fields, windmills, and cycling routes.
Belgium
A country located in Western Europe, known for its medieval towns, Renaissance architecture, and as headquarters of the European Union and NATO.
- Employ the notions of comparative and absolute advantages in foreign trade and their significance in influencing trade arrangements.
Verified Answer
Learning Objectives
- Employ the notions of comparative and absolute advantages in foreign trade and their significance in influencing trade arrangements.
Related questions
(Table: the Production Possibilities for Cars and Leather Boots)Use Table ...
France and England Both Produce Wine and Cloth with Constant ...
If the Opportunity Cost of Producing One Basketball in Romania ...
A Nation Has a Comparative Advantage Over a Trading Partner ...
Which of These Is the Basis of International Trade ...