Podcast
Questions and Answers
What does it mean when a nation has a comparative advantage in the production of a good or service?
What does it mean when a nation has a comparative advantage in the production of a good or service?
- It has less opportunity cost (correct)
- It gives up fewer resources
- It has more opportunity cost
- It gives up more resources
How does having a comparative advantage affect resource allocation in an economy?
How does having a comparative advantage affect resource allocation in an economy?
- Does not impact resource allocation
- Makes the economy more efficient in allocating resources (correct)
- Increases costs for the production of goods
- Decreases efficiency in resource usage
Which of the following is a result of a nation having a comparative advantage over another nation?
Which of the following is a result of a nation having a comparative advantage over another nation?
- Reduced efficiency in resource usage
- Decreased opportunity cost (correct)
- Increased costs for the production of goods
- More resources given up for production
If a nation gives up fewer resources to produce something compared to another nation, what does this imply about its comparative advantage?
If a nation gives up fewer resources to produce something compared to another nation, what does this imply about its comparative advantage?
Why does having a comparative advantage make an economy more efficient in its allocation of resources?
Why does having a comparative advantage make an economy more efficient in its allocation of resources?
What does it mean when a nation has a comparative advantage in the production of a good or service?
What does it mean when a nation has a comparative advantage in the production of a good or service?
How does having a comparative advantage impact resource usage in a nation?
How does having a comparative advantage impact resource usage in a nation?
What is the primary benefit of a nation having a comparative advantage over another nation?
What is the primary benefit of a nation having a comparative advantage over another nation?
In the context of comparative advantage, what does 'opportunity cost' refer to?
In the context of comparative advantage, what does 'opportunity cost' refer to?
How does having a comparative advantage impact the overall efficiency of an economy's resource allocation?
How does having a comparative advantage impact the overall efficiency of an economy's resource allocation?
