Suppose two countries, a and b, produce only two goods, computers and beans. country a
has an opportunity cost of 200 pounds of beans for every computer it makes, and country b
has an opportunity cost of 500 pounds of beans for every computer.
which statements support the theory of comparative advantage?
choose exactly two answers that are correct.
a: country a has a comparative advantage in the production of computers.
b: country a has a comparative advantage in the production of beans.
c: country b should export computers to country a.
d: country b should import computers from country a.

Letter A and Letter D are correct.

Comparative advantage is the ability of a country to produce services and goods for a lower opportunity cost if compared to its trade partners. The Comparative Advantage Theory states that a country should always specialize in the production of products or services that have a lower opportunity cost for them. In this situation, Country A has a comparative advantage in the production of computer, therefore Country B should import computers from country A.

Correct

Country B should import computers from country A.

Country A has a comparative advantage in the production of computers.

Explanation:

c ig

explanation:

where is the options

this is an outline for the decisions that frankie is going to make

opportunity cost

willingness to buy

price or quality

of course, there could be many economic strategies that should be considered important while making decision. opportunity cost is the foremost significant factor while considering any economic option. when you buy something, you should know how much you are forgoing for this product. indeed, you could buy something different with this measure if you changed your mind. willingness to buy shows how much surplus you are earning while making a decision. it is important because it shows you buy what you want or you buy because you have only limited amount of money. the price or quality can be considered as a general economic option that we are applying while buying something. when you buy something, price or quality could be one of the options. indeed, they define the characteristics of the product.    

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