Asked by
Rahul Maurya
on Dec 17, 2024Verified
Refer to Table 3-11. Assume that Bahamas and Denmark each has 8 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
A) 12.
B) 48.
C) 96.
D) 192.
Comparative Advantage
The ability of an entity to produce a good or offer a service at a lower opportunity cost than other entities, leading to more efficient trade possibilities.
Production
Production refers to the process of combining various material inputs and immaterial inputs (plans, knowledge) to make something for consumption (output).
Coolers
Devices or containers used to keep items cool or cold, often used for food and beverages.
- Examine the effects of specialization through comparative advantage on national production and consumption options.
- Analyze tables of economic data to evaluate the results of various trading situations.
Verified Answer
OM
Learning Objectives
- Examine the effects of specialization through comparative advantage on national production and consumption options.
- Analyze tables of economic data to evaluate the results of various trading situations.