Can a country have comparative advantage in all products?
What will be an ideal response?
No, a country can never have comparative advantage in all products, no matter how productive it is in general. Comparative advantage has to do with the relative price a country can produce one good or another in autarky versus the cost at which they can trade those goods with other economies. There will always be goods that are cheaper to produce in another country than at home, relative to the opportunity cost of not producing goods in which the country has comparative advantage.
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(Consider This) Which of the following statements about insurance and risk is true?
A. Insurance inhibits economic growth and investment by discouraging risk-taking. B. Insurance transfers risk from those with a high tolerance for risk to those with a low tolerance for risk. C. Insurance companies always earn profits because insurance premiums always exceed the payout for insured events. D. Insurance transfers risk from those with a low tolerance for risk to those with a higher tolerance for risk.
Refer to the diagram. At output level Q total variable cost is:
A. 0BEQ.
B. BCDE.
C. 0CDQ.
D. 0AFQ.