Question

which situation is an example of comparative advantage in an international market?
o country a decides to grow extra potatoes so they have more to export, while country b does not grow potatoes to export.
o factories in country a and country b produce the same number of tablet computers. country as factories could be used instead to build more laptops than the factories in country b.
o country a invests in a new technology while country b chooses to invest in education.
o country a can produce 100 units of rice per acre of farmland, while country b can only produce 70 units of rice per acre of farmland using the same resources.

Explanation:

Comparative advantage is about the ability to produce a good or service at a lower opportunity - cost. In the case of Country A and Country B producing tablet computers, if Country A's factories can produce more laptops instead of tablets compared to Country B's factories, it shows a comparative advantage in laptop - production as the opportunity - cost of producing tablets in terms of foregone laptops is lower for Country A. The other options do not clearly represent comparative advantage. The first option is just about production quantity for export without considering opportunity - cost. The third option is about different types of investment. The fourth option is about absolute advantage (Country A can produce more rice per acre) rather than comparative advantage.

Answer:

B. Factories in Country A and Country B produce the same number of tablet computers. Country A's factories could be used instead to build more laptops than the factories in Country B.