Why do countries differ in their capacities to produce different goods and services? Because every country has a different productive level when it comes to producing goods and services. ... They benefit by using the money they earn to buy goods and services they cannot produce as efficiently.
What does a country’s ability to produce goods and services depend on?
A country’s standard of living depends on its ability to produce goods and services, which in turn depends on its productivity , which is a function of the education of workers and the access workers have to the necessary tools and technology.
How does the unequal distribution of resources help explain why nations specialize in producing certain goods?
The unequal distribution of resources prevents countries from producing everything their citizens need and want . This is also why we trade. ... Natural resources, as well as climate and location, help determine what goods and services an economy produces.
What causes a country to specialize in certain products?
What causes a country to specialize in certain products? The country’s natural resources . ... a country is better off producing goods and services that they have a comparative advantage supplying.
Why do some countries produce only certain things quizlet?
– A country may not have the ability or materials to produce a particular item . Lacking materials could include capital, labor, or natural resources such as land. – The country may have the materials needed to produce a particular item, but it is not economically feasible to produce that item.
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.
Can a country have absolute advantage in both goods?
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 .
Why can’t businesses or nations produce as much as they want?
Why can’t businesses or nations produce as much as they want? Scarcity and resources are limited . ... Market Economy: Individuals control the factors of production and freely make economic decisions based on what is best for them and their families.
For what two reasons do countries specialize?
Countries specialize so that opportunity costs can be increased . Countries specialize to excel in the production of specific goods and services. Countries specialize to make the most efficient use of their unique set of resources. Countries specialize to increase the number of their imported products.
What is the main effect of increasing opportunity costs quizlet?
As production of a good increases, the opportunity cost of producing an additional unit rises . What explains the bow shape of PPC? Law increasing opportunity cost, all resources are not equally suited to producing both goods.
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.
Which statement best describes how globalization is affecting the world?
The correct answer is letter B: The world is becoming more globalized and connected . Due to modern means of communication and transportation, the world is unified. Some researchers believe that globalization is a natural process by which technology advances.
What is it called when a country is able to produce more than another country?
Absolute advantage describes a situation in which an individual, business or country can produce more of a good or service than any other producer with the same quantity of resources.
When a country has a comparative advantage in the production of a 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.
What does it mean for a nation to have an absolute advantage in the production of a good quizlet?
If a nation has an absolute advantage in the production of a good, it can produce that good using fewer resources than its trading partner . If a nation has a comparative advantage in the production of a good, it can produce that good at a lower opportunity cost than its trading partner. You just studied 20 terms!
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.
