Question

Question 1 Answer saved Marked out of 1.00 Remove flag Emirates has a comparative advantage in producing Ceramics but not in producing This mean that.....(LO#3) Select one: a. Emirates has high opportunity cost in producing ceramics and should import ceramics b. Emirates has a low opportunity cost in producing ceramics and should export ceramic c. Emirates has high opportunity cost in producing computers and should export them d. Emirates has low opportunity cost in producing computers and should export them

Answer 1

Ans. 1. b. Emirates has a low opportunity cost in producing ceramics and should export ceramic.

A country has a comparative advantage in the production of a particular good when that country has a lower opportunity cost in the production of ( producing at a lower cost than the other country ) that particular good and country must export good. Therefore, Emirates has a comparative advantage in the production of ceramics because of the lower opportunity cost of producing ceramics and it should export ceramic.