Asked by Devyn Murray on Jul 01, 2024
Which of the following does not result in a mutually beneficial trade between two countries?
A) One country having a higher opportunity cost of production of a good than the other
B) One country having an abundant supply of natural resources than the other
C) One country's production being more efficient than the other
D) One country having an absolute advantage over the other
E) One country having a comparative advantage in producing a good than the other
Opportunity Cost
The outcome of forgoing possible advantages from other alternatives by choosing one option.
Natural Resources
Resources present in nature, like minerals, forests, water, and fertile lands, that can be tapped for making money.
Absolute Advantage
The ability of a country or individual to produce a good or service more efficiently than other countries or individuals, using fewer resources.
- Gain insights into the linkage between specialization and the enhancement of trade, as explained by comparative advantage.
Learning Objectives
- Gain insights into the linkage between specialization and the enhancement of trade, as explained by comparative advantage.