Author Question: According to the theory of comparative advantage, a country should (Read 75 times)

maegan_martin · **on:** Apr 19, 2019

Question 1

Country A has a comparative advantage compared to Country B in the production of shoes if

◦ Country A can produce shoes at a lower monetary cost than Country B can.
◦ Country A can produce shoes using fewer resources than Country B can.
◦ the demand for shoes is higher in Country A than in Country B.
◦ Country A can produce shoes at a lower cost in terms of other goods than Country B can.

Question 2

According to the theory of comparative advantage, a country should

◦ specialize in and export goods with the highest opportunity cost.
◦ specialize in and export goods with the lowest production cost.
◦ specialize in and export goods with the lowest opportunity cost.
◦ specialize in and export goods with the lowest average cost.

honnalora · **Reply #1 on:** Apr 19, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 25% of students answer this correctly