Question
South Africa has a comparative (relative) advantage over France in the production of maize if it:
produces maize with fewer material inputs than France
can match France's output of maize and have resources left over
has an absolute advantage over France
produces maize at a lower opportunity cost than Franc
produces maize with fewer material inputs than France
can match France's output of maize and have resources left over
has an absolute advantage over France
produces maize at a lower opportunity cost than Franc
Answers
GPT-4o mini
South Africa has a comparative (relative) advantage over France in the production of maize if it:
**produces maize at a lower opportunity cost than France.**
Comparative advantage is determined by comparing the opportunity costs of producing goods between countries. If South Africa has to give up less of another good to produce maize compared to France, then it has a comparative advantage in maize production, even if it does not have an absolute advantage (can produce more in total).
**produces maize at a lower opportunity cost than France.**
Comparative advantage is determined by comparing the opportunity costs of producing goods between countries. If South Africa has to give up less of another good to produce maize compared to France, then it has a comparative advantage in maize production, even if it does not have an absolute advantage (can produce more in total).