What does it mean for a country to have a comparative advantage in producing a product?

What will be an ideal response?


A country has a comparative advantage in producing a product when it has the ability to produce that product at a lower opportunity cost than competitors.

Economics

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The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as

a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.

Economics

A monopolist sells to two consumer groups, students and non-students

Demand for students: Q = 500 - 1/2P Demand for non-students: Q = 750 - 2P MC = 20 Find the profit-maximizing price/quantity combination in each market if the groups can be separated.

Economics

The total value of all final goods and services, measured in current market prices, produced in an economy during a year is

a. total domestic product b. gross domestic product c. real GDP d. gross value product e. total final product

Economics

If the money supply is $3,000, velocity is 4 and the price level is $2, then Real GDP is _____________ units of output. If the money supply doubled over a short time period to $6,000, the simple quantity theory of money would predict that ______________________

A) 3,000; the price level would double B) 6,000; Real GDP would double C) 625; the price level would be cut in half D) 6,000; the price level would double

Economics