Asked by
Paige Dovia-Mae
on Nov 05, 2024Verified
The advantage in the production of a product enjoyed by one country over another when it uses fewer resources to produce that product than the other country does is
A) an absolute advantage.
B) a comparative advantage.
C) a relative advantage.
D) a productive advantage.
Absolute Advantage
The ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.
Comparative Advantage
Comparative Advantage is the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitors.
Productive Advantage
A situation where a person or entity can produce goods or services at a lower opportunity cost than others.
- Comprehend the fundamental principle of comparative advantage and its distinction from absolute advantage.
Verified Answer
DT
Learning Objectives
- Comprehend the fundamental principle of comparative advantage and its distinction from absolute advantage.