GK
WORLD GEOGRAPHY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which statement best explains comparative advantage?
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importing what a country already produces
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exporting what a country cannot produce profitably
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exporting what a country does not know how to produce
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exporting goods and services that a country can produce at lower relative costs than other countries
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Explanation:
Detailed explanation-1: -Comparative advantage describes a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producer.
Detailed explanation-2: -A comparative advantage exists when a country can produce goods at a lower opportunity cost compared to other countries.
Detailed explanation-3: -A country has comparative advantage in producing a good when the country’s opportunity cost of producing the good is lower than the opportunity cost of producing the good in another country.
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