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e eli . Secure I https ://www.rnath Testas nts possible 40kext outcomes tool placement url- Principles of Economics Quiz: Week 4 Quiz 40 pts Time Remaining: 01 This Question: 2 pts 200120 (1 complete) This C Natonal comparalivo ndvantage arses tiom he ftronres n across countrios O A. population O B. technology O C. opportunity cost D. Ihe money cost of production If country A has a comparative advantage in the production of automobiles and country B has a comparative advantage in the production of boats, O A. O B. O c, 0 D. both countries will gain if country B exports automobiles to country A and country A exports boats to country B both countries will gain if country A exports automobiles to country B and country B exports boats to country A only one country will gain, and that country is the one that uses the most up-to-date technology only one country will gain, and that country is the one that has the lowest wage rates Click to select your answer : Search the web and Windows

Explanation / Answer

1) national comparative advantage arises from the differences in C) opportunity cost across countries.

A country has a comparative advantage in producing a particular goods when it has a lower opportunity cost compare to other countries. For example, oil-producing nations have a comparative advantage in chemicals.

2) if country A has a comparative advantage in the production of automobiles and country B has a comparative advantage in production of boats b) both countries will gain if country A exports automobiles to country B and B exports boats to A.  

In this case country A has a lower opportunity cost in producing the automobiles and country B has a lower opportunity in producing the boats. So country A gains profit if they exports automobiles to country B and country B gains profit if they exports boats to country A.

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