Question

The concept of comparative advantage makes the assumption that everyone will be better off

Question 20 options:

producing enough of a specific final good to export.


producing the products they produce relatively best.


producing enough of a good to consume domestically with enough to export.


producing only products they can produce with greater output than any other country.

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Answer 1

The concept of comparative advantage makes the assumption that everyone will be better off producing enough of a good to consume domestically with enough to export. The main idea of comparative advantage is that it is quite profitable to produce goods and services at a lower opportunity cost, and it is not necessary to produce it in a great volume. This concept is totally opposite to the absolute advantage theory.

Answer 2

The concept of comparative advantage makes the assumption that everyone will be better off producing the products they produce relatively best.