Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Country A because it can produce more trucks overall
B
Country B because it has a lower opportunity cost for trucks
C
Neither country has a comparative advantage
D
Both countries can produce trucks equally well
Understanding the Answer
Let's break down why this is correct
Answer
To determine which country has a comparative advantage in producing trucks, we need to look at how many trucks each country can produce compared to cars. Country A can make 5 trucks or 10 cars, meaning for every truck it gives up, it can make 2 cars. On the other hand, Country B can produce 8 trucks or 4 cars, so for each truck it gives up, it only gives up half a car. Since Country B sacrifices fewer cars for each truck it produces, it has a comparative advantage in making trucks. Therefore, Country B should focus on producing trucks, while Country A should focus on cars.
Detailed Explanation
Country B has a lower opportunity cost for making trucks. Other options are incorrect because Some might think more trucks mean a better ability to produce; The idea that neither country has an advantage is incorrect.
Key Concepts
Comparative Advantage
Opportunity Cost
Absolute Advantage
Topic
Understanding Comparative Advantage
Difficulty
easy level question
Cognitive Level
understand
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