Which of the following economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?

A) opportunity cost

B) comparative advantage

C) inflation

D) consumer price index (CPI)

E) gross domestic product (GDP)

Question

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Business

4 April, 15:51

Which of the following economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?

A) opportunity cost

B) comparative advantage

C) inflation

D) consumer price index (CPI)

E) gross domestic product (GDP)

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Answers (1)

Know the Answer?

Ashlynn · Answer 1

Answer: option B) comparative advantage.

Comparative advantage is the advantage that has an economical agent (country in this case) to produce at a lower cost than its competitors.

Which of the following economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?A) opportunity costB) comparative advantageC) inflationD) consumer price index (CPI)E) gross domestic product (GDP)

Which of the following economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors?

A) opportunity cost

B) comparative advantage

C) inflation

D) consumer price index (CPI)

E) gross domestic product (GDP)