Learning Path
Question & Answer
Choose the Best Answer
B → A → D → C
A → B → C → D
D → A → B → C
C → D → A → B
Understanding the Answer
Let's break down why this is correct
First, a country must weigh opportunity costs (what it sacrifices) to see where it can produce goods cheaper than others, its comparative advantage. Other options are incorrect because The mistake is thinking to specialize before knowing costs; This order assumes efficient allocation comes before finding advantage.
Key Concepts
Production Advantage
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Deep Dive: Production Advantage
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Definition
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.
Topic Definition
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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