Asked by
Elizabeth Chesek
on Dec 08, 2024
Verified
Refer to Table 20.2. ________ has a comparative advantage in motorcycles and ________ has an absolute advantage in motorcycles.
A) China; neither
B) Neither; neither
C) Thailand; neither
D) Thailand; China
Comparative Advantage
The ability of an individual or firm to produce a good or service at a lower opportunity cost than other producers.
Absolute Advantage
The capacity of a person, corporation, or nation to manufacture a product or provide a service at a lower unit cost than rival entities.
Motorcycles
No real economic term; in economics context, motorcycles might be discussed concerning market dynamics, production costs, and consumer behavior in the automotive industry.
- Examine situations to identify the country that holds either a comparative or absolute advantage in manufacturing certain products.
- Separate the concepts of comparative advantage and absolute advantage and their impact on international specialization and trade.
Verified Answer
AV
Learning Objectives
- Examine situations to identify the country that holds either a comparative or absolute advantage in manufacturing certain products.
- Separate the concepts of comparative advantage and absolute advantage and their impact on international specialization and trade.