Ask Question
11 March, 05:21

When a country has a comparative advantage in producing a certain good, Question 7 options: the country should import that good. the country should produce just enough of that good for its own consumption. the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. None of the above is correct.

+3
Answers (1)
  1. 11 March, 05:30
    0
    d. None of the above is correct.

    Explanation:

    The comparative advantage refers to the ability that a country has to manufacture a product more efficiently than another country and this term suggests that countries engage in trade exporting the products in which they have a comparative advantage. Based on this, let's evaluate the options:

    -The country should import that good: this is false because the country should export the good.

    -The country should produce just enough of that good for its own consumption: this is false because the country should specialize in the production of this good and engage in trade with other countries to export it and import the other goods the country needs.

    -The country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good: This is false because the opportunity cost is the benefit you lose when you select an option instead of another one and in this case, the product in which the country has the comparative advantage provides more benefits than what it offers to other countries as they are not able to produce it as efficiently which means that it has a lower opportunity cost for the country.

    According to this, the answer is none of the above is correct.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When a country has a comparative advantage in producing a certain good, Question 7 options: the country should import that good. the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers