What is the Law of Comparative Advantage?

What is the Law of Comparative Advantage?
by

1 Answer

Answer :

You are over-thinking things. All it really says is that one country can make things cheaper. The concept of ceteris paribus is applied heavily in economics. It pretty much means that economist go insane if they take every little thing into account. Sometimes you have to make calculations with as few variables as possible.
by

Related questions

Which economist is famous for his theory of comparative advantage? a) Karl Marx b) John Maynard Keynes c) F. Hayek d) David Ricardo

Description : Which economist is famous for his theory of comparative advantage? a) Karl Marx b) John Maynard Keynes c) F. Hayek d) David Ricardo

Last Answer : d) David Ricardo David Ricardo was a British political economist and his most famous theory was that of comparative advantage. Comparative advantage refers to the doctrine that anynation should use its resources solely in industries where it has the most international competitiveness

Factor propotion theory is also known as (a) Comparative advantage theory. (b) Laissez faire theory. © Heckscher Ohlin theory. (d) Product cycle theory.

Description : Factor propotion theory is also known as (a) Comparative advantage theory. (b) Laissez faire theory. © Heckscher Ohlin theory. (d) Product cycle theory.

Last Answer : © Heckscher Ohlin theory.

Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.

Description : Comparative advantage occurs when (a) A country can produce more goods than anyone else (b) A country has a lower opportunity cost in the production of a good than any other country © A country has more product lines than other countries (d) The exchange rate appreciates.

Last Answer : (b) A country has a lower opportunity cost in the production of a good than any other country

.Free trade is based on the principle of (a) Comparative advantage (b) Comparative scale © Economies of advantage (d) Production possibility advantage

Description : .Free trade is based on the principle of (a) Comparative advantage (b) Comparative scale © Economies of advantage (d) Production possibility advantage

Last Answer : (a) Comparative advantage

According to Absolute and Comparative Advantage theories----- is the only factor of production. (a) land (b) labour © capital (d) organization.

Description : According to Absolute and Comparative Advantage theories----- is the only factor of production. (a) land (b) labour © capital (d) organization.

Last Answer : (b) labour

According to the theory of Absolute Advantage a country should specialize in the production of that commodity in which she enjoys----- (a) absolute advantage (b) comparative advantage (c) no advantage (d) utilization.

Description : According to the theory of Absolute Advantage a country should specialize in the production of that commodity in which she enjoys----- (a) absolute advantage (b) comparative advantage (c) no advantage (d) utilization.

Last Answer : (a) absolute advantage

The theory of Comparative Advantage was propounded by (a) Adam Smith (b) David Ricardo © J.S. Mill (d) None of them.

Description : The theory of Comparative Advantage was propounded by (a) Adam Smith (b) David Ricardo © J.S. Mill (d) None of them.

Last Answer : (b) David Ricardo

How does the theory of comparative advantage relate to production possibility curves?

Description : How does the theory of comparative advantage relate to production possibility curves?

Last Answer : What homework is this for?

The theory of Comparative cost advantage is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher

Description : The theory of Comparative cost advantage is given by A. David Ricardo B. Adam Smith C. F W Taussig D. Ohlin and Hecksher

Last Answer : A. David Ricardo

Theoretically trade between two countries lakes place on account of - (1) differences In costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports

Description : Theoretically trade between two countries lakes place on account of - (1) differences In costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports

Last Answer : (3) comparative differences in costs Explanation: Trade exists for man clue to specialization and division of labor, most people concentrate on a small aspect of production, trading for other ... for the benefits of mass production thus providing cost advantage of producing the same commodity.

While making comparative study of development amongst Indian states following criterion is used: a. per capita income and literacy rate b. Literacy rate, per capita income and net attendance ratio. c. Literacy rate, Net attendance ratio and infant mortality rate d. per capita income, literacy rate , net attendance ratio and infant mortality rate.

Description : While making comparative study of development amongst Indian states following criterion is used: a. per capita income and literacy rate b. Literacy rate, per capita income and net attendance ratio. c. ... rate d. per capita income, literacy rate , net attendance ratio and infant mortality rate.

Last Answer : d. per capita income, literacy rate , net attendance ratio and infant mortality rate.

While making comparative study of development amongst Indian states following criterion is used: a. per capita income and literacy rate b. Literacy rate, per capita income and net attendance ratio. c. Literacy rate, Net attendance ratio and infant mortality rate d. per capita income ,literacy rate , net attendance ratio and infant mortality rate.

Description : While making comparative study of development amongst Indian states following criterion is used: a. per capita income and literacy rate b. Literacy rate, per capita income and net attendance ratio. c. ... rate d. per capita income ,literacy rate , net attendance ratio and infant mortality rate.

Last Answer : d. per capita income ,literacy rate , net attendance ratio and infant mortality rate.

Theoretically trade between two countries lakes place on account of (1) differences in costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports

Description : Theoretically trade between two countries lakes place on account of (1) differences in costs (2) scarcity of goods (3) comparative differences in costs (4) need for exports

Last Answer : comparative differences in costs

What can I do about so often getting "screwed" (taken advantage of) for being poor?

Description : What can I do about so often getting "screwed" (taken advantage of) for being poor?

Last Answer : Check your PMs.

The theory of "Maximum Social Advantage" in Public Finance Was given by (1) Robbins (2) Musgrave (3) Findley (4) Dalten

Description : The theory of "Maximum Social Advantage" in Public Finance Was given by (1) Robbins (2) Musgrave (3) Findley (4) Dalten

Last Answer : (4) Dalten Explanation: The 'Principle of Maximum Social Advantage' was introduced by British economist Hugh Dalton. According to Dalton, "The best system of public finance is that which secures the maximum social advantage from the operations which it conducts."

Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Description : Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Last Answer : (3) Hot Money Explanation: Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a ... hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

The principle of maximum social advantage is the basic principle of - (1) Micro Economics (2) Macro Economics (3) Fiscal Economics (4) Environmental Economics

Description : The principle of maximum social advantage is the basic principle of - (1) Micro Economics (2) Macro Economics (3) Fiscal Economics (4) Environmental Economics

Last Answer : (3) Fiscal Economics Explanation: The 'Principle of Maximum Social Advantage', introduced by British economist Hugh Dalton, is the fundamental principle of Public Finance which implies that all ... problems related to government taxation and spending, it comes under the domain of fiscal economics.

Which of the following is an advantage of food processing? A. Availability of seasonal food throughout the year B. Removal of toxins and preserving food for longer C. Adds extra nutrients to some food items D. All of the above

Description : Which of the following is an advantage of food processing? A. Availability of seasonal food throughout the year B. Removal of toxins and preserving food for longer C. Adds extra nutrients to some food items D. All of the above

Last Answer : D. All of the above

Which of the following is not an advantage of weeds? a. A Controls Soil Erosion b. B Expedites water flow in irrigation canals c. C Maintain Soil Fertility d. D Used as fodder

Description : Which of the following is not an advantage of weeds? a. A Controls Soil Erosion b. B Expedites water flow in irrigation canals c. C Maintain Soil Fertility d. D Used as fodder

Last Answer : b. B Expedites water flow in irrigation canals

The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness

The main advantage of specialization results from (a) The economies of large scale production (b) The specializing country behaves like a monopoly © Smaller production runs resulting in lower unit costs. (d) High wages paid to foreign workers.

Description : The main advantage of specialization results from (a) The economies of large scale production (b) The specializing country behaves like a monopoly © Smaller production runs resulting in lower unit costs. (d) High wages paid to foreign workers.

Last Answer : (a) The economies of large scale production

According to Heckscher and Ohlin there are two bases of international trade (a) coparative advantage and absolute advantage (b) gains from trade and cost of trade. © difference in factor endowments and differences in factor intensities. (d) none of them.

Description : According to Heckscher and Ohlin there are two bases of international trade (a) coparative advantage and absolute advantage (b) gains from trade and cost of trade. © difference in factor endowments and differences in factor intensities. (d) none of them.

Last Answer : © difference in factor endowments and differences in factor intensities.

” If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? (a) Adam Smith (b) David Ricardo © J.S Mill (d) None of them.

Description : ” If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? (a) Adam Smith (b) David Ricardo © J.S Mill (d) None of them.

Last Answer : (b) David Ricardo

The theory of Absolute Advantage was propounded by (a) Adam Smith (b) David Ricardo © J. S Mill (d) None of them.

Description : The theory of Absolute Advantage was propounded by (a) Adam Smith (b) David Ricardo © J. S Mill (d) None of them.

Last Answer : (a) Adam Smith

Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Description : Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Last Answer : Hot Money

The theory of “Maximum Social Advantage” in Public Finance was given by (1) Robbins (2) Musgrave (3) Findley (4) Dalten

Description : The theory of “Maximum Social Advantage” in Public Finance was given by (1) Robbins (2) Musgrave (3) Findley (4) Dalten

Last Answer : Dalten

The principle of maximum social advantage is the basic principle of (1) Micro Economics (2) Macro Economics (3) Fiscal Economics (4) Environmental Economics

Description : The principle of maximum social advantage is the basic principle of (1) Micro Economics (2) Macro Economics (3) Fiscal Economics (4) Environmental Economics

Last Answer : Fiscal Economics

Donor aid statistics? Comparative effectiveness of large vs small orgs?

Description : Donor aid statistics? Comparative effectiveness of large vs small orgs?

Last Answer : answer:There are several web sites that grade charities. I don't know if they will give you what you are looking for but here are a few. They all seem to have their own criteria for the ... /www.charitywatch.org/index.html http://www.bbb.org/charity-reviews/national/ http://www.charitynavigator.org/

What is the comparative change in barren and waste land pattern in India between 1960-61 and 2008-09? -Geography

Description : What is the comparative change in barren and waste land pattern in India between 1960-61 and 2008-09? -Geography

Last Answer : Barren and wasteland in India decreased by 12.01% to 8.61% between 1960-61 and 2008-09. This was caused due to massive efforts by the government of India. They have introduced new ... and sowing of regular crops, encroachment of rural and urban settlements which place undue pressure on wastelands.

Give a comparative analysis of Sectional Interest Groups and Public Interest Groups. -SST 10th

Description : Give a comparative analysis of Sectional Interest Groups and Public Interest Groups. -SST 10th

Last Answer : 1. Sectional interest groups seek to promote the interests of a particular section or group of society. For example - trade unions, business associations and professional bodies of teachers, lawyers ... the problems of its members its principal concern is social justice and social equality for all.

a historian uses the comparative method to _____ -General Knowledge

Description : a historian uses the comparative method to _____ -General Knowledge

Last Answer : A historian uses the comparative method to look at similarities and differences across cultures.

What is ‘Comparative Advertising’? -Technology

Description : What is ‘Comparative Advertising’? -Technology

Last Answer : Comparative advertising compares one brand directly or indirectly with one or more competing brands. This is very common and is used by nearly every major industry. This type of advertising is particularly resorted to by companies that are introducing a new product in a competitive market.

What is comparative for new?

Description : What is comparative for new?

Last Answer : More

what is comparative of salty?

Description : what is comparative of salty?

Last Answer : sweet

What is the comparative and superlative of Dangerous?

Description : What is the comparative and superlative of Dangerous?

Last Answer : It is so easy

What is Comparative Degree ?

Description : What is Comparative Degree ?

Last Answer : The form of adjective used to compare the qualities , defects , condition, etc. of two nouns or pronouns is called Comparative Degree .

What is Comparative Scale ?

Description : What is Comparative Scale ?

Last Answer : Comparative scale is when multiple scales are drawn to compare different scales of one unit of measure . This type of scale is usually used to compare different units with distance , distance ... scale. This scale is only used to compare relationships between multiple scales of different units.

What is Comparative Scale ?

Description : What is Comparative Scale ?

Last Answer : Comparative scale is when multiple scales are drawn to compare different scales of one unit of measure . This type of scale is usually used to compare different units with distance , distance ... scale. This scale is only used to compare relationships between multiple scales of different units.

Assertion : Comparative biochemistry provides a strong eviednce in favour of common ancestory of living beings. Reason : Genetic code is universal.

Description : Assertion : Comparative biochemistry provides a strong eviednce in favour of common ancestory of living beings. Reason : Genetic code is universal.

Last Answer : Assertion : Comparative biochemistry provides a strong eviednce in favour of common ancestory of living ... both the assertion and reason are false.

What is the objective of preparing comparative statement of profit and loss

Description : What is the objective of preparing comparative statement of profit and loss

Last Answer : What is the objective of preparing comparative statement of profit and loss

Comparative study of skulls is

Description : Comparative study of skulls is

Last Answer : Comparative study of skulls is A. Craniology B. Conchology C. Malacology D. Osteology

What are the comparative and superlative of slowly?

Description : What are the comparative and superlative of slowly?

Last Answer : more slowly, most slowly

What is the comparative adverb form of willingly?

Description : What is the comparative adverb form of willingly?

Last Answer : willing

What is the Comparative and superlative degree of musical?

Description : What is the Comparative and superlative degree of musical?

Last Answer : Need answer

What is Comparative of playful?

Description : What is Comparative of playful?

Last Answer : Need answer

What is the comparative and superlative of excited?

Description : What is the comparative and superlative of excited?

Last Answer : The comparative form of exciting is "more exciting." Thesuperlative is "most exciting."

What is the comparative of horrible?

Description : What is the comparative of horrible?

Last Answer : IT might PROBABLY be Worst?

What is the comparative for heavy?

Description : What is the comparative for heavy?

Last Answer : Heav

What diagram that shows the comparative amount of energy at each feeding level is called?

Description : What diagram that shows the comparative amount of energy at each feeding level is called?

Last Answer : food web

What is comparative and superlative degree of the word easy?

Description : What is comparative and superlative degree of the word easy?

Last Answer : Easiest