The correct answer is: Country X didn’t have to give up a more profitable form of production in order to grow cotton. Comparative advantage comes when a country gives up less than others to engage in a particular type of production.
Under which circumstance would a country have a comparative advantage in the production of a certain good?
In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.
Which circumstance would give Country X an absolute advantage over country why in the production of clothing?
Which circumstance would give Country X and absolute advantage over Country Y in the production of clothing? Its production costs for clothing were the lowest in the world. Its tariffs on clothing were the highest in the world.
What does Country X have a comparative advantage in the production of coffee?
When does Country X have a comparative advantage in the production of coffee? Country X allows coffee growers to pay very low wages to their. workers.
Which country has a comparative advantage in the production of rugs?
To have comparative advantage means to have lower opportunity cost. Thus Agrabah has a comparative advantage in carpets since 1/4 is less than 4/5.
Why does interdependence bring economic growth quizlet?
Interdependence enables specialized production, which is more efficient. Interdependence involves a loss of control over the national economy. International trade enables specialization, which brings increased efficiency and greater competition. Free trade leads to lower prices and greater sales.
Who has the comparative advantage in producing beef?
Canada has the comparative advantage in beef production because for Canada the opportunity cost of producing 1 beef = 1/3 computer, whereas for Japan, 1 beef = 4/5 computer.
What country has an absolute advantage in coffee production?
Answer:Brazil has an absolute advantage in coffee:–Producing a pound of coffee requires only one labor-hour in Brazil, but two in Argentina.
