A(N) _____ Exists When A Country Is The Most Efficient Producer Of An Item.

A(n) _____ Exists When A Country Is The Most Efficient Producer Of An Item.?

absolute advantage. This is an example of absolute advantage which exists when a country is the only source of an item the only producer of an item or the most efficient producer of an item.

When a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items they have?

advantage is when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items. … A company based in the United States is thinking about selling its products globally.

What kind of advantage does a country have if it can make a product more efficiently quizlet?

The nation that has the lower opportunity cost in producing a certain good has a comparative advantage in producing that good. A country has a comparative advantage in the product that it can produce most efficiently given all the products it could choose to produce.

Which of the following is the ability to produce something more efficiently than any other country can?

Absolute advantage is a country’s ability to produce a given product more efficiently than can another country comparative advantage is a country’s ability to produce a given product relatively more efficiently than can another country.

Which of the following exists when a country can produce something more cheaply and or of higher quality than any other country can?

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Question Answer
Which of the following exists when a country can produce something more cheaply and higher quality than any other country can? a. absolute advantage

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When a country imports more products than it exports it has a N balance of trade?

If a country exports a greater value than it imports it has a trade surplus or positive trade balance and conversely if a country imports a greater value than it exports it has a trade deficit or negative trade balance.

Why should countries specialize in producing goods?

Countries become better at making the product they specialize in. Consumer benefits: Specialization means that the opportunity cost of production is lower which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.

What kind of advantage does a country have if it can make?

In economic terms a country has a comparative advantage when it can produce at a lower opportunity cost than that of trade partners. While a country cannot have a comparative advantage in all goods and services it can have an absolute advantage in producing all goods.

What kind of advantage does a country have?

A country has an absolute advantage in those products in which it has a productivity edge over other countries it takes fewer resources to produce a product. A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods.

What is absolute advantage in economics quizlet?

Absolute advantage. The ability to produce the same amount of units of a good or service as some other producer using quantity of resources (output). Law of Comparative advantage. A nation is better off when it produces goods and services for which it had a comparative advantage.

Is the ability to produce a specific product more efficiently?

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

When a country’s goods and services are relatively efficient?

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absolute advantage exists when a country can produce a good or service at a lower cost than other countries
comparative advantage a situation in which a country specializes in the production of a good or service at which it is relatively more efficient

What is one country’s ability to produce more of a given product than another country?

Comparative advantage is a country’s ability to produce more of a given product than can another country of comparative size absolute advantage is a country’s ability to produce a given product relatively more efficiently than a larger country.

What occurs when a country buys more than it sells?

If a country sells more products than it buys it has a favorable balance called a trade surplus. If it buys more than it sells it has an unfavorable balance or a trade deficit.

When a country allows trade and becomes an exporter of a good?

When a country allows trade and becomes an exporter of a good domestic producers of the good are better off and domestic consumers of the good are worse off. Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers.

Why does trade occur between countries?

The five main reasons international trade takes place are differences in technology differences in resource endowments differences in demand the presence of economies of scale and the presence of government policies. Each model of trade generally includes just one motivation for trade.

What occurs when a country exports more than it imports?

A country that imports more goods and services than it exports in terms of value has a trade deficit while a country that exports more goods and services than it imports has a trade surplus.

What happens when a country imports more than export?

If a country imports more than it exports it runs a trade deficit. If it imports less than it exports that creates a trade surplus. When a country has a trade deficit it must borrow from other countries to pay for the extra imports. … At that point a trade surplus is healthier than a deficit.

When the value of exports from a country exceeds the value of imports?

A trade surplus is an economic measure of a positive balance of trade where a country’s exports exceed its imports. A trade surplus occurs when the result of the above calculation is positive. A trade surplus represents a net inflow of domestic currency from foreign markets.

When a country specializes in the production of a good?

When a country specializes in the production of a good this means that it can produce this good at a lower opportunity cost than its trading partner. Because of this comparative advantage both countries benefit when they specialize and trade with each other.

Which of the following best explains why a country might specialize in the production of a good?

Explanation:By specializing in the good(s) that the country produces most efficiently more of those goods are produced and thus the country can trade for more of other goods than it would have been able to produce on its own.

Why is international trade important to most countries?

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

How do countries know when they have a comparative advantage in the production of a good?

Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers. Countries are better off if they specialize in producing the goods for which they have a comparative advantage.

What is the benefit in reaching the absolute advantage?

A country chooses to produce bananas instead of wheat. What is the benefit in reaching the absolute advantage in the production of one good? c. to produce more units of a good while using fewer resources. You just studied 75 terms!

When a country has a comparative advantage in the production of a good it means that it can produce?

When a country has a comparative advantage in the production of a good it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods.

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Which country has absolute advantage?

Examples of absolute advantage

China Thailand and Vietnam on the other hand produce and export low-cost manufactured goods. These three countries have an absolute advantage because of their considerably lower unit labor costs.

Which calculation helps determine which producer has the absolute advantage?

Which calculation helps determine which producer has the absolute advantage? Amount produced minus resources used.

What matters most in determining efficient distribution of production over the world is?

What matters most in determining the efficient distribution of production over the world is: absolute advantage.

What is absolute advantage in international business quizlet?

Absolute advantage is when one country is able to produce more of a good than another. Comparative advantage is when a country has a lower opportunity cost to produce the good than another.

What does it mean for a country to have an absolute advantage Compare that to having a comparative advantage quizlet?

Absolute advantage is the ability to produce a good using fewer inputs than another producer while comparative advantage is the ability to produce a good at a lower opportunity cost than another producer (reflecting the relative opportunity cost). … Comparative advantage is more important for trade.

What is an example of an absolute advantage?

And if given the same number of inputs Charlie is able to produce more cups than Patty then he would have an absolute advantage in cups.

Is the ability to produce a specific product more efficiently than any other nation?

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

What is the exportation of large quantities of a product at a price lower than that of the same product in the home market?

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Which of the following best compares licensing and exporting?

Which of the following best compares licensing and exporting as tools for entering foreign markets? Licensing and exporting are both low-risk but exporting is more complicated.

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