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When a person specializes in producing the good in which he or she has a comparative advantage total production in the economy?
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Why is the east said to have a comparative advantage in producing oil?
The east has a comparative advantage in producing oil because it has fewer labor costs. American workers in oil production are paid a premium because of the dangerous and technical nature of the field.
Why does country a have a comparative advantage over country b in the production of televisions?
Country A has a lower opportunity cost for producing televisions
When does Country A have a comparative advantage over Country B in the production of televisions?
Country A has a lower opportunity cost for producing televisions.
How is a comparative advantage obtained?
by producing a product with a lower opportunity cost
According to classical trade theory a country will export an item?
in which it has a comparative advantage in producing
Why is the east said to have a comparative advantage in producing oil?
The east has a comparative advantage in producing oil because it has fewer labor costs. American workers in oil production are paid a premium because of the dangerous and technical nature of the field.
Why does country a have a comparative advantage over country b in the production of televisions?
Country A has a lower opportunity cost for producing televisions
When does Country A have a comparative advantage over Country B in the production of televisions?
Country A has a lower opportunity cost for producing televisions.
How is a comparative advantage obtained?
by producing a product with a lower opportunity cost
Who had presented comparative advantage theory?
The theory of comparative advantage was presented by economist David Ricardo in the early 19th century. Ricardo argued that countries should specialize in producing goods and services in which they have a lower opportunity cost, and then trade with other countries to maximize overall production and consumption.
According to classical trade theory a country will export an item?
in which it has a comparative advantage in producing
Will a nation tend to export or import goods which it has a comparative advantage?
A nation will export goods for which it has a comparative advantage. By exporting goods, it has the comparative advantage because it means they have a lower opportunity cost for producing the good. A country can produce it well and can produce most likely a lot of it.
What is a type of toy does LC Toys and Games have the greatest comparative advantage in producing?
Action Figures
What is a comparative advantage?
A comparative advantage is the ability of a country, individual, or entity to produce a good or service at a lower opportunity cost than another. It is the foundation of international trade, where each party specializes in producing goods where they have a comparative advantage, leading to greater efficiency and overall economic benefits.
What describes the law of comparative costs?
The law of comparative advantage states that countries should specialize in producing goods and services in which they have a lower opportunity cost and trade with other countries to maximize overall production and benefit all parties involved. It is based on the principle that countries can improve their economic welfare by focusing on what they do best and trading for goods and services they are less efficient in producing.
What if one nation becomes more efficient than another nation at producing a specific product?
a comparative advantage
What south American country produces a great volume of wheat?
Argentina is a South American country that specializes in the production of wheat. The country also specializes in producing beef.
