Question

Which of the following gives a nation a comparative advantage Select one: a. Having a command based economy b. Being able to produce more in total then someone else c. Having the more educated labor force d. Being able to produce a good at a lower opportunity cost

Answer 1

Answer:

d. Being able to produce a good at a lower opportunity cost

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

For example, country A produces 2 apples and 1 orange while country B produces 30 apples and 10 oranges.

Country A has a comparative advantage in the production of oranges because it produces at a lower opportunity cost when compared to country B.

A country has an absolute advantage in the production if it produces more quantities of the good when compared with other countries.

In the above example country B has a comparative advantage in both the production of Apples and oranges.

I hope my answer helps you