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Question
although country c can produce more cashews than country d, country d can produce cashews with relatively greater efficiency. what kind of advantage does country d have over country c? a cost b absolute c opportunity d comparative
Brief Explanations
To determine the advantage, we analyze each option:
- Option A (cost): The question focuses on production efficiency relative to another country, not just cost. Eliminate A.
- Option B (absolute): Absolute advantage is about producing more of a good. Country C produces more cashews, so Country D doesn't have absolute advantage. Eliminate B.
- Option C (opportunity): Opportunity advantage relates to what is given up, not relative production efficiency. Eliminate C.
- Option D (comparative): Comparative advantage is about producing a good with a lower opportunity cost (greater relative efficiency) than another country. Country D has greater relative efficiency in cashew production, so this matches.
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D. comparative