Question

Which situation is an example of comparative advantage in an international market?

Country A decides to grow extra potatoes so they have more to export, while Country B does not.

Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B.

Country A invests in a new technology while Country B chooses to invest in education.

Farmland in Country A can produce 100 units of rice per acre, while Country B can only produce 70 units of rice using the same amount of workers and farmland.

Answer 1

B

Step-by-step explanation:

Answer 2

Answer: alternative D

Explanation: Comparative advantage consists in producing more goods spending less than your trade partners, lowering the prices and making more profit out of it. In situation D, we see a higher production in Country A compared to Country B, both being under the same conditions. Thus, it's easy to see that Country A has an advantage when trading in the international market.