When one nation can produce a product at lower cost relative to another nation it is said to have a n in producing that product?

Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another. Even if one country has an absolute advantage in producing all goods, different countries could still have different comparative advantages.

When one nation can produce a product at lower cost relative to another nation it is said to have a in producing that product?

When one nation can produce a product at lower cost relative to another nation? The idea of comparative advantage is attributed to English political economist David Ricardo and his book On the Principles of Political Economy and Taxation.

When one nation can produce a product at lower cost relative to another nation it is said to have an in producing that product quizlet?

The idea behind comparative advantage reflects the possibility that one party: May be able to produce something at a lower opportunity cost than another party.

What is absolute advantage? When one nation can produce a product at lower cost relative to another nation.

When a country can produce a good at a lower cost than another country?

In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost. The than another country. The theory of comparative advantage is attributed to political economist David Ricardo, who wrote the book Principles of Political Economy and Taxation (1817).

Which situation is the best example of opportunity cost?

It is the important concept in economics and also the relationship which is between choice and scarcity. A good example of opportunity cost is you can spend money and time on other things but you can not spend time reading books or the money in doing something which can help.

Which country has an absolute advantage in producing cotton in producing oranges?

Answer: Denmark has an absolute advantage in the production of both goods.

What nations increase production in their area of?

When nations increase production in their area of comparative advantage and trade with each other, both countries can benefit. Again, the production possibility frontier is a useful tool to visualize this benefit. Consider a situation where the United States and Mexico each have 40 workers.

Which of the following is true a nation can have a comparative advantage in the production of every good?

Which of the following is true? A nation cannot have a comparative advantage in the production of every good. A nation cannot have an absolute advantage in the production of every good. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.

Which of the following is true nation Cannot have an absolute advantage in the production of every good?

A nation cannot have a comparative advantage in the production of every good. Suppose that Canada can produce 100,000 hockey sticks or 10,000 gallons of maple syrup in a typical workweek, while Germany can produce 90,000 hockey sticks or 10,000 gallons of maple syrup in a typical workweek.

What happens when a country’s exports exceed their imports?

A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. A trade surplus occurs when the result of the above calculation is positive. A trade surplus represents a net inflow of domestic currency from foreign markets.

Which company has the comparative advantage in producing small tubes of toothpaste?

Which company has the comparative advantage in producing small tubes of toothpaste? Bright White– because it has the bigger difference than Fresh!

What is the benefit in reaching the absolute advantage in the production of one good?

The benefit of reaching the absolute advantage in the production of one good is the ability to specialize in producing that good, thus utilizing a country’s’ resources efficiently.

In what circumstances might a country not benefit from trade with another country?

If a trade was bad, the countries simply reject it, it is a consensual trade. First, if the opportunity costs are equal between the two countries, there is nothing to gain from specialization, the countries are identical and there is no benefit from producing the good abroad rather than at home.

What is the biggest factor that leads a country to specialize in certain products?

Comparative advantage drives countries to specialize in the production of the goods for which they have the lowest opportunity cost, which leads to increased productivity.

Why would a nation choose not to produce everything its citizens want?

Supply and demand. why would a nation choose not to produce everything it’s citizens want? Since the dollars less it would be more expensive which can lead to the laws and customers and exports cost less. … People in Britain might not want to buy from the US or have exports because for them I would be more expensive.

When one nation can produce a product at lower cost relative to another nation it is said to have quizlet?

When one nation can produce at a lower cost relative?

When one country can produce a product at a lower cost in terms of other goods that country is said to have?

When a country can produce a product at a lower cost than any other nation?