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To determine comparative advantage, we need to compare the opportunity costs. For Country A: Opportunity cost of 1 unit of cloth = 2 units of wheat (since 10 cloth = 20 wheat). Opportunity cost of 1 unit of wheat = 0.5 units of cloth. For Country B: Opportunity cost of 1 unit of cloth = 1 unit of wheat. Opportunity cost of 1 unit of wheat = 1 unit of cloth. Since the opportunity cost of producing wheat is lower in Country A (0.5 units of cloth) compared to Country B (1 unit of cloth), Country A has a comparative advantage in producing wheat.
Which one of the following is NOT a feature of an Open Economy?
National Statistical Office (NSO) has released the estimates of national accounts. The GDP growth rate projection as per NSO for 2021-22 (FY22) is given...
Which of the following is not a constitutional body in India?
Which schemes are included under Tier 1 and Tier 2 of the Payment Infrastructure Development Fund (PIDF)?
Overhauling expenses of 25,000 for the engine of a motor car to get better fuel efficiency is :
As of August 2018, who among the following is the Chairman of SEBI?
Mango showers are:
What does RAM stand for in the context of computing?
How much Government assistance is given under SFURTI in Regular Cluster (500 artisans)?
What percentage could be withdrawn after 3 years under the National Pension System (NPS)?