Absolute and Comparative Advantage - Cameron Brown Absolute and Comparative Advantage Review Questions 1 Absolute Advantage when one country can use

Absolute and Comparative Advantage - Cameron Brown Absolute...

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Cameron Brown Absolute and Comparative Advantage Review Questions 1) Absolute Advantage- when one country can use fewer resources to produce a good compared to another country. Comparative Advantage- when a good can be produced at a lower cost in terms of other goods. 2) Comparative advantage leads to gains from trade when two (or more) countries produce products that the other country needs for cheaper and vice versa, then they trade and both benefit from it. 3) Absolute & comparative advantage Critical Thinking Questions 1) Yes, the difference in geography is behind the differences in absolute advantages because some countries have access to different resources than others do, which means every country has a different
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