A country with a comparative advantage in producing computer chips
A)Has a lower opportunity cost of producing computer chips than its trading partners.
B)Can produce computer chips with fewer resources than its trading partners.
C)Can achieve better terms of trade in selling computer chips than its trading partners.
D)Has greater capacity to produce computer chips,given its resources,than do its trading partners.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than its trading partners, not necessarily using fewer resources or having greater capacity.

A Country with a Comparative Advantage in Producing Computer Chips