Which of the following does NOT describe the comparative advantage? Select one: a. Economic agents does not specialize in producing a good in which they have the comparative advantage b. Comparative advantage refers to a producer's ability to produce a good at a lower opportunity cost than other producers c. Comparative advantage refers to a producer's ability to give up less to produce the good compared to other producers Od. Economic agent with less flat (more steep) production possibilities frontier has comparative advantage in the good on the y-axis e. Economic agent with more flat production possibilities frontier has comparative advantage in the good on the x-axis

Which of the following does NOT describe the comparative advantage? Select one: a. Economic agents does not specialize in producing a good in which they have the comparative advantage b. Comparative advantage refers to a producer's ability to produce a good at a lower opportunity cost than other producers c. Comparative advantage refers to a producer's ability to give up less to produce the good compared to other producers Od. Economic agent with less flat (more steep) production possibilities frontier has comparative advantage in the good on the y-axis e. Economic agent with more flat production possibilities frontier has comparative advantage in the good on the x-axis

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

17
Which of the following does NOT describe the comparative advantage?
Select one:
Ⓒa. Economic agents does not specialize in producing a good in which they have the
comparative advantage
b. Comparative advantage refers to a producer's ability to produce a good at a lower
opportunity cost than other producers
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Oc. Comparative advantage refers to a producer's ability to give up less to produce the
good compared to other producers
Od. Economic agent with less flat (more steep) production possibilities frontier has
comparative advantage in the good on the y-axis
e. Economic agent with more flat production possibilities frontier has comparative
advantage in the good on the x-axis
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