National comparative advantage arises from the differences in across countries o

Question

National comparative advantage arises from the differences in across countries opportunity cost technology the money out of production population If country A has a comparative advantage in the production of automobiles and country B has a comparative advantage in the production of boats only one country will gain, and that country is the one that has the lowest wage rates both countries will gain if country B exports automobiles to country A and country A exports boats to country B both countries will gain if country A exports automobiles to country B and country B exports boats to country A only one country will gain, and that country is the one that uses the most up-to-date technology

Explanation / Answer

Answer) Q1.) a. Opportunity cost.

national comparative advantage arising from differences in endowments or differences in relative productivities

Q2.) c.both countries will gain if country A exports automobiles to country B and country B exports boats to country A.

country should specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries, even if this means buying goods from other countries that it could produce at home country.

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