In general,individuals should specialize in producing those goods for which they have a(n)
A) absolute advantage.
B) comparative advantage.
C) absolutely comparative advantage.
D) absolute and comparative advantage.
E) comparatively absolute advantage.

Question

Quizplus · Accepted Answer

Individuals should specialize in producing goods for which they have a comparative advantage, which means they can produce that good at a lower opportunity cost compared to other goods they could produce. This allows for efficient production and mutually beneficial trade with others who specialize in producing other goods. Absolute advantage, on the other hand, only measures the productivity or efficiency of producing a good, but does not take into account opportunity costs.

In General,individuals Should Specialize in Producing Those Goods for Which