ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -While a country cannot have a comparative advantage in all goods and services, it can have an absolute advantage in producing all goods.
Detailed explanation-2: -Answer and Explanation: The given statement is true. A country will have an absolute advantage in producing a commodity if it can utilize fewer resources to produce a unit of that good than another country.
Detailed explanation-3: -Absolute advantage describes a situation in which an individual, business or country can produce more of a good or service than any other producer with the same quantity of resources. The United States, for example, has a skilled workforce, abundant natural resources, and advanced technology.
Detailed explanation-4: -Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners.