Ask Question
7 April, 04:17

According to the theory of comparative advantage, a country should specialize in producing a good that involves

a. more inputs than those in other countries.

b. fewer inputs than those in other countries.

c. a higher opportunity cost than that of other countries.

d. a lower opportunity cost than that of other countries.

+3
Answers (2)
  1. 7 April, 05:58
    0
    d. a lower opportunity cost than that of other countries

    Explanation:

    comparative advantage means the benefit you get for an exchange of something. In this case scenario, the country should produce something that would have a lower opportunity cost because then they would be losing less. If it were to have a higher opportunity cost, that would mean the country is loosing more than it is gaining, and that is certainly what it does not aim.
  2. 7 April, 07:25
    0
    The correct answer is option d.

    Explanation:

    The theory of comparative advantage was given by David Ricardo. It states that a country should trade the good that it specializes in. A country is said to be specialized in the production of a good that it can produce at a comparatively lower opportunity cost.

    Opportunity cost is the cost of sacrificing the second-best alternative.

    The theory of absolute advantage, on the other hand, stated that a country should produce and trade a good that it can produce at a lower cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to the theory of comparative advantage, a country should specialize in producing a good that involves a. more inputs than those ...” in 📙 Social Studies if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers