What does the word “comparative” in comparative advantage refer to?Group of answer choicescomparing which country can do something more efficiently than other countries and then having that country specialize in itcomparing different levels of tariffs and trade barriers and choosing the best one for a countrycomparing the things a country could do and choosing to specialize in what they are most efficient incomparing trade deals to pick the one that brings a country closest to most-favored-natio

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

In general, when there is free trade and nations produce and export goods and services for which they have comparative advantage, the global economy is better off.Absolute Advantage means that one nation (or individual) can produce more of a good or service than another. Another way of looking at it is to say that one nation (or individual) can produce a good or service using fewer inputs than another uses.Comparative Advantage, in contrast, looks at the opportunity cost a nation (or individual) experiences when producing a good. When one item is produced, something else is given up – but how much? For example, if a nation produces only pickup trucks and pineapples, comparative advantage depends on how many pickup trucks are given up to produce a unit of pineapples, and vice versa. Comparative advantage helps us determine whether it is beneficial for two nations or individuals to specialize and trade.

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs

How does comparative advantage affect trade between countries?A.Countries typically only trade with partners that have a similar comparative advantage.B.Countries cannot trade their goods unless they have a strong comparative advantage.C.Countries trade for goods produced by countries that have a comparative advantage.D.Countries with a significant comparative advantage are unlikely to trade with others.SUBMITarrow_backPREVIOUS

_______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.