Question

When A Country ignores the principles of comparative advantage and decides to produce a good in...

When A Country ignores the principles of comparative advantage and decides to produce a good in which it does not have comparative advantage, _______ are negatively affected and _____ are protected.

A) consumers, producers
B) consumers, government

Homework Answers

Answer #1

Option A.

  • When a country ignores the principles of comparative afadvanta and decides to produce a good in which it does not have comparative advantage, consumers are negatively affected and the producer's are protected.
  • A country is said to have comparative advantage when it produces good quality goods at lower prices.
  • To achieve competitive advantage, the producer's have to spend a lot to use high quality resources and are forced to sell those goods at lower rates.
  • But in the absence of comparative advantage, the consumers are hurted as they have to pay higher rates and get only low quality products.
  • The producer's benefit as they no longer have to use costly and high quality raw materials to manufacture their goods.
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When a country has a comparative advantage in the production of a good it mean that...
When a country has a comparative advantage in the production of a good it mean that it can produce this good at a lower apportunity cost than it trading
If a country has a comparative advantage in the production of a good, then that country...
If a country has a comparative advantage in the production of a good, then that country A)also has an absolute advantage in producing that good. B)should allow another country to specialize in the production of that good. C)has a lower opportunity cost in the production of that good. D)all of the above
If a country has a comparative advantage in the production of a good, then its resources...
If a country has a comparative advantage in the production of a good, then its resources are better suited to the production of that good than the resources of other countries. Group of answer choices True False
The price of good X in country A is $3; the price of the same good...
The price of good X in country A is $3; the price of the same good in country B, once the nominal exchange rate has been taken into account, is also $3. The price of good Y in country A is $2, while the price of the same good in country B, once the nominal exchange rate has been taken into account, is $3. a.) Which country has absolute advantage in what? Which country has comparative advantage in what? Provide...
1. If one person/firm/country has: a. An absolute advantage in the production of a good, do...
1. If one person/firm/country has: a. An absolute advantage in the production of a good, do they automatically also have a comparative advantage in the production of that good as well? Why? b. An absolute advantage in the production of all good is it worth it for them to trade with others? why? 2. Is absolute advantage a requirement for comparative advantage? Why?
A(n) _____ means a country can produce more of a good than another country using the...
A(n) _____ means a country can produce more of a good than another country using the same amount of resources. Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices comparative advantage complete advantage comparable advantage absolute advantage
15. When a country participates in international trade as an exporter of a good, domestic producers...
15. When a country participates in international trade as an exporter of a good, domestic producers a. win while home consumers lose. b. Both domestic producers and consumers win. C. lose while domestic consumers win.   d. both domestic producers and consumers lose.
11. Because the price of an exported good​ ________, then​ ________ gain from exports. A. Falls;...
11. Because the price of an exported good​ ________, then​ ________ gain from exports. A. Falls; domestic producers B. rises; domestic consumers C. falls; domestic consumers 12. When the principle of comparative advantage is used to guide​ trade, then a country will specialize by producing only A.goods with the highest opportunity cost. B.goods for which production takes fewer worker−hour than another country. C.goods for which production costs are more than average total costs. D.goods with the lowest opportunity costs.
Comparative Advantage There are two countries in the world. There are also only two different types...
Comparative Advantage There are two countries in the world. There are also only two different types of goods produced, food and clothing. Each country has the same amount of “inputs” (i.e. labor, capital, raw materials, etc.), which amounts to 100,000 units of input. Below is a chart that lists out how many units of output each country could create if they created just one type of good. For example, if Country A produced ONLY food, then with 100,000 units of...
26- When economists say that an individual or country has the comparative advantage in the production...
26- When economists say that an individual or country has the comparative advantage in the production of a good, it means that they: A) can produce more of the good than anyone else. B) are the lowest-opportunity-cost producer of the good. C) are the highest-opportunity-cost producer of the good. D) are operating on their production possibilities frontier. 27- A country produces and consumes eight units of sugar cane costing $50 per unit and two iPods that cost $200 each. After...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT