Which of the following is the best example of comparative advantage? Meissen, Germany produces porcelain better than they manufacture vehicles. A country with more textiles has a comparative advantage over a country with more wine.
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What is an example of comparative advantage?
For example, if a country is skilled at making both cheese and chocolate, they may determine how much labor goes into producing each good. If it takes one hour of labor to produce 10 units of cheese and one of of labor to produce 20 units of chocolate, then this country has a comparative advantage in making chocolate.
Which of the following best describes comparative advantage?
Which of the following best describes the application of comparative advantage? Development focused on maximizing economic efficiency and well-being by focusing resources to produce whatever the country can produce relatively well compared to other countries and exports them in exchange for goods it does not produce.
What is comparative advantage your answer?
Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
What is comparative advantage?
What Is Comparative Advantage? A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
What is comparative advantage quizlet?
Comparative advantage refers to the ability to produce goods and services at a lower opportunity COST, not necessarily at a greater volume.
What is the comparative advantage in economics?
comparative advantage, economic theory, first developed by 19th-century British economist David Ricardo, that attributed the cause and benefits of international trade to the differences in the relative opportunity costs (costs in terms of other goods given up) of producing the same commodities among countries.
Which of the following is true about comparative advantage?
Which of the following is true of comparative advantage? The law of comparative advantage states that the individual with the lower opportunity cost of producing a particular output should specialize in that output.
Which situation is an example of comparative advantage in international market?
Which situation is an example of comparative advantage in an international market? Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B. Which is the best definition of hyperinflation?
What are the advantages of comparative advantage?
The benefit of comparative advantage is the ability to produce a good or service for a lower opportunity cost. A comparative advantage gives companies the ability to sell goods and services at prices that are lower than their competitors, gaining stronger sales margins and greater profitability.
What companies have a comparative advantage?
Here are three in particular:
- Amazon Prime. No company has mastered order fulfillment and shipping quite like Amazon.
- UberEATS. While individual restaurants have long had their own food delivery services, UberEATS is changing the game for both businesses and consumers.
- Jimmy John’s.
What is the law of comparative advantage quizlet?
The law of comparative advantage is that a nation is better off when it produces goods and services for which it has a comparative advantage. The “opportunity cost” determines which products will give a nation a comparative advantage over another country in producing a particular product.
What are the four main sources of comparative advantage?
Comparative advantage is determined by a country’s resources, that is the land, labour, capital and enterprise.
What is comparative advantage absolute advantage quizlet?
Absolute advantage is the ability to produce a good using fewer inputs than another producer, while comparative advantage is the ability to produce a good at a lower opportunity cost than another producer (reflecting the relative opportunity cost).
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.
What is absolute advantage economics quizlet?
Absolute advantage. The ability to produce the same amount of units of a good or service as some other producer using quantity of resources (output).
How is comparative advantage define Mcq?
1) How is comparative advantage defined? a) You produce the things you are especially good at, and buy from others, the goods you are less. efficient in producing.
Which of the following is an example of absolute advantage?
A clear example of a nation with an absolute advantage is Saudi Arabia, The ease with which it can reach its oil supplies, which greatly reduces the cost of extraction, is its absolute advantage over other nations.
Which gives a country a comparative advantage?
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.
What is a competitive advantage in business?
Your competitive advantage is what sets your business apart from your competition. It highlights the benefits a customer receives when they do business with you. It could be your products, service, reputation, or even your location.