Asked by
veerabhadrarao miriyala d. n.
on Dec 12, 2024
Verified
Nevada is the low opportunity cost producer of computer software, and California is low opportunity cost producer of wine. Which of the following is true?
A) Nevada has no comparative advantage over California in the production of wine or computer software.
B) Nevada has a comparative advantage in producing wine
C) Nevada has a comparative advantage in producing software.
D) Nevada has a comparative advantage in producing both wine and software.
Comparative Advantage
The capacity of an entity, whether a single person, a corporation, or a nation, to create a product or offer a service more cost-effectively in terms of foregone opportunities than its competitors.
Low Opportunity Cost
A situation where the cost of foregoing the next best alternative is relatively minimal when choosing one option over another.
Computer Software
Programs and operating information used by a computer to perform specific tasks.
- Acquire knowledge of comparative advantage and how it is implemented in international trade.
- Identify the elements that influence a nation's decision to export or import specific goods.
Verified Answer
IK
Learning Objectives
- Acquire knowledge of comparative advantage and how it is implemented in international trade.
- Identify the elements that influence a nation's decision to export or import specific goods.