According to the theory of comparative advantage, a country should
A) specialize in and export goods with the highest opportunity cost.
B) specialize in and export goods with the lowest production cost.
C) specialize in and export goods with the lowest opportunity cost.
D) specialize in and export goods with the lowest average cost.

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a country should specialize in producing and exporting goods for which it has the lowest opportunity cost, allowing it to maximize efficiency and gains from trade.

According to the Theory of Comparative Advantage, a Country Should