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Production Advantage

Production Advantage refers to a country's ability to produce goods more efficiently than another country. Absolute Advantage is when one country can produce more of both goods, while Comparative Advantage is when a country has a lower opportunity cost in producing a particular good. Understanding production advantages helps countries specialize in goods where they are most efficient, leading to overall economic growth.

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1

How can the implementation of advanced robotics in a warehouse enhance supply chain optimization?

Robots move items faster and with fewer mistakes. Other options are incorrect because People think robots stop keeping stock, but they still need item...

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2

How might the adoption of cutting-edge agricultural technology impact a farmer's comparative advantage in producing crops?

Using new tech lets a farmer grow crops more cheaply. Other options are incorrect because Many think new tech only boosts the number of crops but does...

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3

How does the integration of innovative technology within a supply chain impact a company's comparative advantage in a global market?

New tech speeds up tasks, cuts waste, and saves money. Other options are incorrect because People think technology only adds new product types; The id...

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4

If Country A can produce 10 units of wheat or 5 units of cloth while Country B can produce 6 units of wheat or 3 units of cloth, which country has a comparative advantage in producing wheat?

Country A gives up 0.5 cloth for each wheat it makes, while B gives up 0.5 cloth as well. Other options are incorrect because Some think Country B is ...

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5

Which concept explains why a country might choose to produce a good in which it has a lower opportunity cost, rather than one in which it has an absolute advantage?

Comparative advantage shows that a country should make the good it can produce most cheaply in terms of what it gives up. Other options are incorrect ...

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6

Which scenario illustrates the principle of Comparative Advantage between two countries?

The first country can produce rice with fewer sacrificed wheat than the second country, so its opportunity cost of rice is lower. Other options are in...

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7

Arrange the following concepts in the correct order to demonstrate how a country can leverage its production advantages for economic growth: A) Specialization in goods with comparative advantage B) Understanding opportunity costs C) Increased trade with other countries D) Efficient resource allocation

First, a country must weigh opportunity costs (what it sacrifices) to see where it can produce goods cheaper than others, its comparative advantage. O...

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8

Which of the following statements accurately describe the concepts of Absolute and Comparative Advantage in production? Select all that apply.

Comparative advantage means a country can produce a good at a lower opportunity cost than another country. Other options are incorrect because The mis...

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