GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A situation in which a country specializes in the production of a good or service at which it is relatively more efficient?
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Absolute advantage
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Concerning advantage
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Comparative advantage
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Available advantage
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Explanation:
Detailed explanation-1: -In economic terms, a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. 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: -Comparative advantage refers to a company’s ability to produce goods and services at a lower cost than anyone else. It often occurs when a country produces something at a lower cost than you could produce it in your own country.
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