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Questions and Answers
What is the concept of comparative advantage primarily concerned with?
What is the concept of comparative advantage primarily concerned with?
- The ability to produce the highest quantity of goods
- The balance of imports and exports
- The impact of trade on global economics
- The efficiency of carrying out specific economic activities (correct)
Which of the following best describes a key feature of comparative advantage?
Which of the following best describes a key feature of comparative advantage?
- It implies a lower opportunity cost for production. (correct)
- It aims for maximum output in all economic activities.
- It assumes equal resources among individuals or groups.
- It relates only to international trade scenarios.
If a person has a comparative advantage in producing a specific product, what does this imply?
If a person has a comparative advantage in producing a specific product, what does this imply?
- They can produce that product more efficiently than others. (correct)
- They will never trade that product with others.
- They will always produce more of that product than others.
- They will incur higher costs in producing that product.
In what scenario can comparative advantage lead to increased overall economic efficiency?
In what scenario can comparative advantage lead to increased overall economic efficiency?
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Which statement about comparative advantage is incorrect?
Which statement about comparative advantage is incorrect?
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