Question

A country that has ___ should export whatever it is most efficient at producing.

1. an absolute advantage
2. a comparative advantage
3. a high demand
4. a low supply

A country that has ___ should export goods and services that have a lower opportunity cost of production.
1. an absolute advantage
2. a comparative advantage
3. a high demand
4. a low supply

As a result, countries should ___ producing the goods and services for which they have the lowest ___.
1a. decrease
2a. ignore
3a. specialize in
1b. average cost
2b. marginal cost
3b. opportunity cost

Answer 1

Countries that have a comparative advantage should export goods they are most efficient at producing and have lower opportunity costs. They should specialize in producing goods with the lowest opportunity cost.

Step-by-step explanation:

A country that has a comparative advantage should export whatever it is most efficient at producing. Comparative advantage refers to a country's ability to produce a good at a lower opportunity cost compared to other countries. By focusing on producing goods in which they have a comparative advantage, countries can increase global production and benefit from trade.

A country that has a comparative advantage should export goods and services that have a lower opportunity cost of production. Opportunity cost refers to the value of the next best alternative that is given up when making a choice. By exporting goods and services with lower opportunity costs, countries can maximize their production and benefit from trade.

As a result, countries should specialize in producing the goods and services for which they have the lowest opportunity cost. Specialization allows countries to concentrate their resources on producing goods and services they are most efficient at, leading to increased production and trade.

Answer 2

absolute advantage, comparative advantage, specialize in, opportunity cost