Asked by
Madison Winslow
on Dec 08, 2024
Verified
Refer to Figure 20.1. Canada has ________ advantage in the production of soybeans and ________ advantage in the production of alfalfa.
A) a comparative; an absolute
B) a comparative; neither a comparative nor absolute
C) neither a comparative nor absolute; neither a comparative nor absolute
D) an absolute; a comparative
Comparative Advantage
An economic principle that suggests a country, individual, or company is most efficient at producing a certain good or service compared to others, enabling trade benefits.
Absolute Advantage
The ability of a country, company, or individual to produce a good or service at a lower cost per unit than competitors using the same amount of resources.
Soybeans
A leguminous plant originating from East Asia, extensively cultivated for its consumable beans that have various applications.
- Acquire an understanding of the concept of comparative advantage and how it is contrasted with absolute advantage.
- Assess the role of exchange rates in determining trade flows between countries.
Verified Answer
LM
Learning Objectives
- Acquire an understanding of the concept of comparative advantage and how it is contrasted with absolute advantage.
- Assess the role of exchange rates in determining trade flows between countries.