When a country specializes in the production of a good that is relatively cheaper for it to produce than other goods, it is because of:

Question

Quizplus · Accepted Answer

This situation is known as comparative advantage, where a country can produce a particular good at a lower opportunity cost than another country. This allows for specialization and trade between countries, leading to overall economic efficiency and gains from trade. The other options (A, C, and D) are not relevant or correct in describing this concept.

When a Country Specializes in the Production of a Good