The idea of comparative advantage is based directly on
A)the concept of opportunity cost.
B)the idea of absolute advantage.
C)using workers with the most diverse sets of skills.
D)the concept of technical progress.

Question

Quizplus · Accepted Answer

The concept of comparative advantage is based directly on the idea of opportunity cost, which refers to the value of the next best alternative that must be given up in order to pursue a certain action. In this case, comparative advantage suggests that countries should specialize in producing goods and services which they can produce at a lower opportunity cost than other countries, and trade with each other to maximize overall efficiency and benefits.

The Idea of Comparative Advantage Is Based Directly on