Asked by
Paris Nance
on Nov 05, 2024
Verified
If someone has a comparative advantage in growing pineapples,
A) she can grow pineapples at a lower opportunity cost than other pineapple growers.
B) she also has an absolute advantage in growing pineapples.
C) she can grow more pineapples using the same resources than other pineapple growers.
D) pineapples are the only product she can grow.
Comparative Advantage
The capacity of an individual or country to manufacture a given good or service more efficiently, incurring lower opportunity costs than their counterparts.
Opportunity Cost
The omission of possible gains that could come from different options when one is preferred.
- Recognize the concept of comparative advantage and its significance in the specialization and trade process.
Verified Answer
AS
Learning Objectives
- Recognize the concept of comparative advantage and its significance in the specialization and trade process.