Correctly complete the following statements from the options below.
(a) If a country can produce a good at a lower opportunity cost than another country, then it has in the production of that good.
(b) If one country can produce a good using fewer resources than another country, then it has in the production of that good.
(c) If the ratio of a country's average price of exports relative to imports rises, then that country has .

(i) improving terms of trade
(ii) a comparative advantage
(iii) an absolute advantage

Question

Correctly complete the following statements from the options below.
(a) If a country can produce a good at a lower opportunity cost than another country, then it has in the production of that good.
(b) If one country can produce a good using fewer resources than another country, then it has in the production of that good.
(c) If the ratio of a country's average price of exports relative to imports rises, then that country has .

(i)	improving terms of trade
(ii)	a comparative advantage
(iii)	an absolute advantage

Quizplus · Accepted Answer

The Answer of Correctly complete the following statements from the options below.
(a) If a country can produce a good at a lower opportunity cost than another country, then it has in the production of that good.
(b) If one country can produce a good using fewer resources than another country, then it has in the production of that good.
(c) If the ratio of a country's average price of exports relative to imports rises, then that country has .

(i)	improving terms of trade
(ii)	a comparative advantage
(iii)	an absolute advantage

Correctly Complete the Following Statements from the Options Below