A comparative advantage exists when a country can produce goods at a lower opportunity cost compared to other countries.
It is not possible for a country
to have a comparative advantage in all goods. … An absolute advantage
When a country has a comparative advantage in producing a certain good?
A country has a comparative advantage when a good can be produced at
a lower cost in terms of other goods
. Countries that specialize based on comparative advantage gain from trade.
Is it possible for a country to have a comparative advantage quizlet?
A
country will not have a comparative advantage
producing a good if its opportunity cost of producing that good is higher than that for other countries, even if it is producing efficiently.
Is it impossible for a nation to have a comparative advantage in producing everything?
It is possible for a nation
not
to have an absolute advantage in anything; but it is not possible for one nation to have a comparative advantage in everything and the other nation to have a comparative advantage in nothing.
When a country has a comparative advantage it means that it can produce a good at a lower?
Comparative Advantage vs.
Comparative advantage refers to the ability to produce goods and
services at a lower opportunity cost
, not necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products.
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 do countries not completely specialize?
In the real world, specialization is not complete. Why do countries do not completely specialize? –
Because not all goods are traded internationally
. … – Because production of most goods involves increasing opportunity costs.
How do countries know when they have a comparative advantage in the production of a good 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 happens when a country has absolute advantage in all goods?
These high-income countries can produce all products with fewer resources than a low-income country. … Even when one country has an absolute advantage in all products,
trade can still benefit both sides
. This is because gains from trade come from specializing in one’s comparative advantage.
Which country has a comparative advantage in the production of honey?
The United States
has a comparative advantage in the production of honey and Canada has a comparative advantage in the production of maple syrup.
What has a comparative advantage in producing good quizlet?
A country has comparative advantage in the production of a good
if it can produce that good at a lower opportunity cost relative to another country
. the difference between the opportunity cost of producing the product domestically versus the cost of purchasing the product from another country receives from trade.
In which situation does one country have a comparative advantage over another country quizlet?
one country has comparative advantage over another in the
production of a particular good relative to other goods if it produces that good less inefficiently (more efficiently) compared with the other country
.
Has a comparative advantage in producing lumberjack boots?
Canada
has a comparative advantage in producing lumberjack boots. … Neither country has an absolute advantage in both goods because Canada can produce more boots but the United States can produce more shirts.
Which country has a comparative advantage for producing cups?
Agrabah
has the absolute advantage in producing cups because 50>20. h. To have comparative advantage means to have lower opportunity cost.
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.
What country has a comparative advantage?
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.
