Why is trade based on comparative advantage?
What will be an ideal response?
The relevant cost of producing a good is how much of other goods must be sacrificed. The opportunity cost of a good is the economically important cost, and comparative advantage is based on opportunity costs. World output can be greater when countries specialize based on comparative advantage.
Economics
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Longer time frames generally result in less elastic supply
a. True b. False Indicate whether the statement is true or false
Economics
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the supply curve. b. upward shift of the supply curve. c. decrease in quantity supplied. d. increase in quantity supplied.
Economics