When a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production is . a. Absolute advantage b. Comparative advantage c. Economic advantage
Added by Saleem A.
Step 1
This is essentially the definition of having a lower opportunity cost of production. Show more…
Show all steps
Your feedback will help us improve your experience
Niamat Khuda and 61 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
A country has an absolute advantage in the production of a good if that country _____ a. has the lowest opportunity cost of producing the good, regardless of whether it is produced using the fewest resources. b. can produce the good using fewer resources than another country would require. c. has the greatest opportunity cost of producing the good, regardless of whether it is produced using the fewest resources. d. has the greatest opportunity cost of producing the good and can sell it at the highest price. e. has the lowest opportunity cost of producing the good and can sell it at the highest price.
Jennifer S.
What is absolute advantage? What is comparative advantage? Is it possible for a country to have a comparative advantage in producing a good without also having an absolute advantage? Briefly explain.
Trade-offs, Comparative Advantage, and the Market System
Comparative Advantage and Trade
What is the difference between absolute advantage and comparative advantage? Will a country always be an exporter of a good in the production of which it has an absolute advantage? Briefly explain.
Comparative Advantage and the Gains from International Trade
Comparative Advantage in International Trade
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD