Saudi Arabia has a comparative advantage in producing oil because it
A) has specialized in the production of oil given its natural resources.
B) has forced other countries not to sell their oil.
C) has specialized in the production of all goods.
D) forces the use of oil for the production of all electricity.
E) benefits from the heavy use of oil for transportation.

Question

Quizplus · Accepted Answer

Saudi Arabia is known to have vast natural resources of oil, which it has specialized in producing for the world market. This gives the country a comparative advantage in producing oil over other countries that do not have such resources or have not specialized in oil production.

Saudi Arabia Has a Comparative Advantage in Producing Oil Because