A country possesses a comparative advantage in the production of a product if
A) the opportunity cost, in terms of the amount of other products that it gives up to produce this product, is lower than it is for its trading partners.
B) it possesses an absolute advantage in the production of this good compared to its trading partners.
C) it is able to produce less of this good per worker than its trading partners.
D) it can produce more of this good per hour than its trading partners.
A
You might also like to view...
Policy actions designed to allow relatively open competition in national stock and bond markets are called
A) capital market liberalization. B) financial sector deregulation. C) cross-border mergers and acquisitions. D) regulatory arbitrage.
Explain the effect of the following changes on equilibrium price and quantity of a commodity: (a) increase in average incomes. (b) increase in population