Asked by
Brei'El ChyLyne
on Oct 25, 2024
Verified
Use the following statements to answer this question. I. A nation may have a comparative advantage in the production of a good without having an absolute advantage in the production of any goods.
II) A nation may have a comparative advantage in the production of two or more goods.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.
Comparative Advantage
The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade possibilities.
Absolute Advantage
The ability of an entity to produce more of a good or service with the same amount of resources or the ability to produce the same amount with fewer resources than competitors.
- Examine the implications of international trade through the lens of comparative and absolute advantage.
Verified Answer
AW
Learning Objectives
- Examine the implications of international trade through the lens of comparative and absolute advantage.