How is it possible for some countries to produce more goods and services with fewer workers than other countries?

How is it possible for some countries to produce more goods and services with fewer workers than other countries?

Some nations can produce more goods with fewer workers than other countries that have more workers. How can that be true? More technology is used in the country with fewer workers, increasing worker productivity. The government determines the policy such as taxation and interest rates.

What makes some countries more productive than others?

Countries that have a wealth of research and development and/or access to new technology often have a more productive work force than countries without access to technology. As productivity increases, economic growth increases.

What does it mean when a country can produce more goods over another country?

comparative advantage
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.

When a country can produce a product more efficiently than another country?

Comparative advantage suggests that countries will engage in trade with one another, exporting the goods that they have a relative advantage in. Absolute advantage refers to the uncontested superiority of a country to produce a particular good better.

Why are some countries more advanced than others?

Physical factors – some areas have a hostile or difficult landscape. This can make development more difficult. Examples of this are very hot climates or arid (a lack of water) climates which make it difficult to grow sufficient food. Economic factors – some countries have very high levels of debt .

Why should countries specialize in producing goods with which they have a comparative advantage rather than?

comparative advantage is the key to determining specialization and trade. Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. They can then trade for the goods for which other countries have a comparative advantage.

Why is there a need for nations to trade with each other?

Countries trade with each other when, on their own, they do not have the resources, or capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce resources, countries can produce a surplus, and trade this for the resources they need.