According to the theory of comparative advantage, a country
A) exports the goods in which its has a comparative advantage.
B) imposes tariffs on goods in which it does not have comparative advantage.
C) imports the goods in which it has a comparative advantage.
D) exports goods in which it has absolute advantage.

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a country should export goods in which it has a comparative advantage, meaning it can produce these goods at a lower opportunity cost compared to other countries. This allows for more efficient global production and trade.

According to the Theory of Comparative Advantage, a Country