The ability of a country to produce a specific good at a lower opportunity cost than its trading partners is known as
A)The inequality trap.
B)The human advantage.
C)Comparative advantage.
D)Absolute advantage.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a certain good or service at a lower opportunity cost than another country. This means that even if a country has an absolute advantage in all goods, it can still benefit from trade by specializing in the product it can produce at a lower cost.

The Ability of a Country to Produce a Specific Good