What best describes a comparative advantage like the one that emerged during the first industrial revolution?Multiple choice question.It is when each nation has a lower opportunity cost when producing one good over another good.It is when one nation is able to successfully harness the power of technological advances.It is when nations make all the goods they need, eliminating the need for trade.It is when a nation begins with more wealth than another, making innovation easier.

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

In general, when there is free trade and nations produce and export goods and services for which they have comparative advantage, the global economy is better off.Absolute Advantage means that one nation (or individual) can produce more of a good or service than another. Another way of looking at it is to say that one nation (or individual) can produce a good or service using fewer inputs than another uses.Comparative Advantage, in contrast, looks at the opportunity cost a nation (or individual) experiences when producing a good. When one item is produced, something else is given up – but how much? For example, if a nation produces only pickup trucks and pineapples, comparative advantage depends on how many pickup trucks are given up to produce a unit of pineapples, and vice versa. Comparative advantage helps us determine whether it is beneficial for two nations or individuals to specialize and trade.

advantage occurs when a country has a cost advantage in a good over another producing country.

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs

Which of the following conditions signify Comparative Advantage?a.When a country can produce goods at low cost.b.When a country can produce goods at low taxes.c.When a country can produce goods at low opportunity cost.d.When a country can transport goods at low cost.