SSC
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: -Comparative advantage occurs when a country can produce something with lower opportunity costs than other nations. Lower costs would be an example of absolute advantage. To be successful countries make decisions based on comparative advantage, not absolute advantage.
Detailed explanation-3: -Which of the following statements best describes a comparative advantage? It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
There is 1 question to complete.