Which one of the below describes a situation where one country's production cost are lower than the rest of other countries? a) absolute advantage, b) fair advantage, c) comparative advantage, d) relative advantage

Which one of the below describes a situation where one country's production cost are lower than the rest of other countries? a) absolute advantage, b) fair advantage, c) comparative advantage, d) relative advantage

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: International Trade And Finance

Section: Chapter Questions

Problem 17SQ

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Question

Which one of the below describes a situation where one country's production cost are lower than the rest of other countries?

a) absolute advantage, b) fair advantage, c) comparative advantage, d) relative advantage

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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