What is complementary advantage in AP Human Geography?
complementary advantage. When two regions specifically satisfy each other's needs through exchange of raw materials and or finished goods.
What is the difference between complementary and comparative advantage?
Comparative advantage is the ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals. A complementary good is a good whose use is related to the use of an associated or paired good.
Which statement is the best description of comparative advantage?
Which of the following statements best describes a comparative advantage? It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
Which of the following is a comparative advantage?
Comparative advantage includes inherited resources, such as labor, climate, arable land, and petroleum reserves.
What countries have comparative advantage?
For example, countries with plentiful oil resources can generally produce oil inexpensively. Because Saudi Arabia produces oil very cheaply, it holds a comparative advantage in oil, and it exports oil in order to finance its purchases of imports.
What is Absolute Advantage AP Human Geography?
Absolute Advantage. a country can produce particular goods at a lower cost in comparison to another country. Comparative Advantage. a condition in which a country produces particular goods at a lower opportunity cost in comparison to other countries.
What is comparative and absolute advantage?
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor. Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
How do you do comparative advantage?
0:205:00Calculating Comparative Advantage – YouTubeYouTube
Which is an example of comparative advantage quizlet?
Country 2 can gain comparative advantage by producing their pants and shoes at a lower cost. Also by using less resources to produce their goods. A person with comparative advantage produces something at a lower cost while absolute advantage is being better at producing something than someone else.
When a country has a comparative advantage?
A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods. Countries that specialize based on comparative advantage gain from trade.
What is comparative advantage theory?
comparative advantage, economic theory, first developed by 19th-century British economist David Ricardo, that attributed the cause and benefits of international trade to the differences in the relative opportunity costs (costs in terms of other goods given up) of producing the same commodities among countries.
What is comparative advantage AP Econ?
Comparative advantage refers to the person or country who can produce a good or service for the lowest opportunity cost.
What is the difference between absolute and comparative advantage?
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor. Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
What is the meaning comparative advantage?
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
What is comparative advantage quizlet?
Comparative advantage refers to the ability to produce goods and services at a lower opportunity COST, not necessarily at a greater volume.
Which of the following best describes comparative advantage quizlet?
Which of the following best describes the application of comparative advantage? Development focused on maximizing economic efficiency and well-being by focusing resources to produce whatever the country can produce relatively well compared to other countries and exports them in exchange for goods it does not produce.
What does the term comparative advantage mean?
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
What is difference between comparative and absolute advantage?
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor. Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
When a country has a comparative advantage in the production of a good quizlet?
A country has comparative advantage in the production of a good if it can produce that good at a lower opportunity cost relative to another country.
Which of the following is the best definition of absolute advantage?
Absolute advantage is when a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors.
What is the economic definition of comparative advantage?
In economics, a comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country.
What is comparative advantage based on quizlet?
Comparative advantage is a comparison based on opportunity cost. If a producer is self-sufficient, the production possibilities frontier is also the consumption possibilities frontier.
What does comparative advantage mean?
A person has a comparative advantage at producing something if he can produce it at lower cost than anyone else. Having a comparative advantage is not the same as being the best at something.
What is comparative advantage and absolute advantage?
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor. Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.