Dimitri’s family has lived in Costa Rica for generations and has learned that a country can have a competitive edge when certain conditions exist. What status can a country achieve when it can produce something more efficiently using fewer resources? (1 point) Responses Comparative advantage Comparative advantage Scarcity Scarcity Absolute advantage Absolute advantage Specialization
The correct response is "Comparative advantage".
The status that a country can achieve when it can produce something more efficiently using fewer resources is called comparative advantage.
The correct answer is "Comparative advantage".
In order to understand why comparative advantage is the correct answer, let's break down the other options:
1. Scarcity: While scarcity is an important economic concept, it refers to the limited availability of resources rather than a country's ability to produce goods more efficiently.
2. Absolute advantage: Absolute advantage refers to a situation where a country can produce a good or service more efficiently than another country, without considering any trade-offs. However, in the given scenario, the question specifically mentions producing something more efficiently using fewer resources, which indicates a focus on comparative advantage rather than absolute advantage.
3. Specialization: Specialization is closely related to comparative advantage. It refers to a situation where individuals, firms, or countries focus their production on a narrow range of goods or services in which they have a comparative advantage. While specialization is an important outcome of having a comparative advantage, it is not the actual status achieved.
Comparative advantage, on the other hand, refers to a country's ability to produce a specific good or service at a lower opportunity cost compared to another country. It implies that the country can produce something more efficiently using fewer resources in relation to other countries. By focusing on producing goods or services in which they have a comparative advantage, countries can maximize their productivity, trade with others, and achieve economic growth.
In summary, a country can achieve a competitive edge and maximize its economic potential by leveraging its comparative advantage - the ability to produce a specific good or service more efficiently with fewer resources - in order to specialize and engage in international trade.