Asked by Nuwan Maddumage Don on Jun 02, 2024
Verified
When one country can produce a product at a ________ cost in terms of other goods, that country is said to have a(n) ________ advantage.
A) higher; comparative
B) lower; comparative
C) lower; absolute
D) higher; absolute
Comparative Advantage
The ability of a party to produce a particular good or service at a lower opportunity cost than others, enabling trade benefits.
Absolute Advantage
The ability of an entity to produce a good or service more efficiently than its competitors with the same resources.
- Evaluate the principles guiding the international trade according to comparative and absolute advantage theories.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
B
Explanation :
A country has a comparative advantage when it can produce a product at a lower opportunity cost in terms of other goods compared to other countries.
Learning Objectives
- Evaluate the principles guiding the international trade according to comparative and absolute advantage theories.
Related questions
Suppose That Greece and Portugal Are Both Engaged in the ...
According to ________, a Country Should Specialize and Export Goods ...
What Does It Mean to Have an Absolute Advantage in ...
What Insights About International Trade Came from Adam Smith and ...
One Main Point of Frederic Bastiat's Satire Is That ...