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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Answers

Answer 1

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

Answer 2

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

What is comparative advantage?

The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage.

Opportunity cost is a new consideration in the idea of comparative advantage when comparing various manufacturing possibilities. If someone can create something for less money than anyone else, they have a comparative advantage. Comparative advantage is different from superiority in a given field.

Therefore, the correct option is b,  producing the products they produce relatively best.

To learn more about comparative advantage, refer to the link:

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