Questions: Which situation is an example of comparative advantage in an international market? O Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export. O Factories in Country A and Country B produce the same number of tablet computers, Country A's factories could be used instead to build more laptops than the factories in Country B. O Country A invests in a new technology while Country B chooses to invest in education. O Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.

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

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

O Factories in Country A and Country B produce the same number of tablet computers, Country A's factories could be used instead to build more laptops than the factories in Country B.

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

O Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.
Transcript text: Which situation is an example of comparative advantage in an international market? O Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export. O Factories in Country A and Country B produce the same number of tablet computers, Country A's factories could be used instead to build more laptops than the factories in Country B. O Country A invests in a new technology while Country B chooses to invest in education. O Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources. 02:44:59 Next Submit
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Solution

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Answer

The answer is: Factories in Country A and Country B produce the same number of tablet computers, Country A's factories could be used instead to build more laptops than the factories in Country B.

Explanation
Option 1: Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export.

This option does not illustrate comparative advantage. It simply states that Country A grows more potatoes for export, while Country B does not grow potatoes for export. Comparative advantage involves the ability of a country to produce a good at a lower opportunity cost than another country.

Option 2: Factories in Country A and Country B produce the same number of tablet computers, Country A's factories could be used instead to build more laptops than the factories in Country B.

This option is an example of comparative advantage. It indicates that Country A has a comparative advantage in producing laptops because it can produce more laptops with the same resources compared to Country B. This means Country A has a lower opportunity cost for producing laptops than Country B.

Option 3: Country A invests in a new technology while Country B chooses to invest in education.

This option does not directly relate to comparative advantage. It describes different investment choices made by two countries but does not compare their production capabilities or opportunity costs.

Option 4: Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.

This option describes absolute advantage, not comparative advantage. Absolute advantage refers to the ability of a country to produce more of a good with the same resources compared to another country. Comparative advantage, on the other hand, focuses on the lower opportunity cost of production.

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