[PDF] refer to figure 3 20. canada has a comparative advantage in the production of

When do you have a comparative advantage in producing a good?

QUESTION 22 You have a comparative advantage in producing a good whenever: O you enjoy producing that good. O you can produce more of the good than someone else can using the same resources. O your opportunity cost is constant. O your opportunity cost of producing that good is lower than that of other producers.

Why do countries export goods with a comparative advantage?

A nation will export goods for which it has a comparative advantage. By exporting goods, it has the comparative advantage because it means they have a lower opportunity cost for producing the good. A country can produce it well and can produce most likely a lot of it. Difference between Competitive Advantage and Comparative Advantage?

Which economic agent has the comparative advantage in producing crabs?

The economic agent with the lower marginal cost of producing a good has the comparative advantage in producing that good. In this case, you have the comparative advantage in producing pineapples, and Jamie has the comparative advantage in producing crabs.

How did Bernhofen and Brown test the theory of comparative advantage?

The theory is only valid if the world really only produces two goods. The theory turned out to be incorrect. 10. Bernhofen and Brown tested the theory of comparative advantage by looking at data from 19th century Japan. This allowed them to observe which of the following data that would not normally be available?