Asked by Jessica Colley on May 19, 2024
Verified
If a nation has a comparative advantage in the production of good X,this means that the nation
A) cannot benefit by producing and trading this product.
B) gives up less of alternative goods than other nations in producing a unit of X.
C) has a production possibilities curve identical to those of other nations.
D) is not subject to opportunity costs in producing good X.
Comparative Advantage
The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.
Alternative Goods
Products or services that can be used in place of each other, offering consumers choices based on price, preference, or availability.
- Illuminate the ideas behind comparative and absolute advantage in the field of international commerce.
- Gain an understanding of the impact of opportunity costs on trade connections.
Verified Answer
1G
18. Galuh Mafela Mutiara SujakMay 25, 2024
Final Answer :
B
Explanation :
If a nation has a comparative advantage in producing good X, it means that it can produce that good at a lower opportunity cost than other nations. This means that it gives up less of alternative goods to produce a unit of X. Therefore, the best answer is B.
Learning Objectives
- Illuminate the ideas behind comparative and absolute advantage in the field of international commerce.
- Gain an understanding of the impact of opportunity costs on trade connections.