Thursday, July 30, 2009

If one country can produce one good in a more effective way than the same good being produced in another?

country, that country is said to have a:


a. tendency to import that good


b. specialized labor force


c. a comparative advantage


d. a higher level of GDP

If one country can produce one good in a more effective way than the same good being produced in another?
C. a comparative advantage.





The alternative to a comparative advantage is an absolute advantage which means that, regardless of efficiency, in the same time period one country can produce more of one good than another country.
Reply:C
Reply:c, by definition


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