In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.
Under which circumstance would Country X have a comparative advantage in the production of cotton quizlet?
The correct answer is: Country X didn’t have to give up a more profitable form of production in order to grow cotton. Comparative advantage comes when a country gives up less than others to engage in a particular type of production.
What does Country X have a comparative advantage in the production of coffee?
When does Country X have a comparative advantage in the production of coffee? Country X allows coffee growers to pay very low wages to their. workers.
Which circumstance would give Country X an absolute advantage over country why in the production of clothing?
Which circumstance would give Country X and absolute advantage over Country Y in the production of clothing? Its production costs for clothing were the lowest in the world. Its tariffs on clothing were the highest in the world.
Which country has a comparative advantage in the production of rugs?
Malaysia
< 1, Malaysia has a comparative advantage in rug production, and will specialize in producing rugs.
Who has the comparative advantage in producing beef?
Canada has the comparative advantage in beef production because for Canada the opportunity cost of producing 1 beef = 1/3 computer, whereas for Japan, 1 beef = 4/5 computer.
Why does interdependence bring economic growth quizlet?
Interdependence enables specialized production, which is more efficient. Interdependence involves a loss of control over the national economy. International trade enables specialization, which brings increased efficiency and greater competition. Free trade leads to lower prices and greater sales.
In which situation does one country have a comparative advantage over another country quizlet?
Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.
What is a real life example of comparative advantage?
Prices will drive the system. For example Ireland has a comparative advantage in cheese and butter due to climate and a large amount of land suitable for dairy cows. China has a comparative advantage in electronics because it has an abundance of labor.
Which country has a comparative advantage in producing shoes?
The United States
The United States has an absolute advantage in producing both shoes and refrigerators; that is, it takes fewer workers in the United States than in Mexico to produce both a given number of shoes and a given number of refrigerators.
Who has the absolute advantage in the production of oats?
1. The following table gives the number of hours it takes in the United States and Scotland, using the same amount of resources, to produce a ton of oats or one bagpipe. (A) (The United States / Scotland) has an absolute advantage in the production of oats.
Which country has an absolute advantage in producing beef?
Brazil
Brazil has the absolute advantage in producing beef and the United States has the absolute advantage in autos. The opportunity cost of producing one pound of beef is 1/10 of an auto; in the United States it is 3/4 of an auto.
