International difference is opportunity costs lead to countries acquiring ?
Correct answer: A. Comparative advantage
- A. Comparative advantage
- B. High exchange rates
- C. trade barriers
- D. trade quotas
Explanation
When opportunity costs differ internationally, each country can produce some goods at a relatively lower sacrifice than others. This creates comparative advantage and provides the basis for mutually beneficial trade.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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