Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage explain quizlet?

Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage explain quizlet?

Explain. Yes. Comparative advantage is defined by what you have to give up to produce a good. If the opportunity cost of production is low, a country will still have a comparative advantage even when at an absolute disadvantage.

Is it possible for a country to have a comparative advantage in producing a good without 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 possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything?

It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything. Absolute advantage is based on opportunity cost.

When a country has a comparative advantage in the production of a good it means that it can produce?

When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods.

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.

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.

Is it possible for a country to have a 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. However, a country can have an absolute advantage in all goods.

Under what circumstances does a country have a comparative advantage quizlet?

A country has a comparative advantage in the production of a good when they can produce a good at a lower opportunity cost than another country.

How does comparative advantage express itself in the global marketplace?

Globalization has brought the world together by encouraging more trade among nations, more open financial institutions and a greater flow of investment capital across international borders. Less-developed countries have benefited from globalization by leveraging their comparative advantage in labor costs.

How do countries know when they have a comparative advantage in the production of a good group of answer choices?

Can a country have an absolute comparative advantage?

While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods. The difference between a comparative advantage and an absolute advantage has to do with production costs, quality, and efficiency.

How does the law of comparative advantage work?

The law of comparative advantage states that free trade works even if one country ends up with an absolute advantage in producing all products or in all aspects of producing a good or service because other countries would still have comparative advantages in the production of some goods or services.

Which is an example of an absolute advantage?

Suppose one country has an absolute advantage in the production of both goods. Even in this case, each country will have a comparative advantage in the production of one of the goods. For example, suppose aLC = 10, aLW = 2, aLC ∗ = 20, and aLW ∗ = 5.

Which is better comparative advantage or opportunity cost?

Comparative advantage takes a more holistic view, with the perspective that a country or business has the resources to produce a variety of goods. The opportunity cost of a given option is equal to the forfeited benefits that could have been achieved by choosing an available alternative in comparison.