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.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of a country to produce a specific good at a lower opportunity cost than its trading partners. This concept is the foundation for international trade and allows countries to specialize in producing goods for which they have a comparative advantage and trade with others for goods in which they do not have an advantage. A and B do not accurately describe this economic concept.

The Ability of a Country to Produce a Specific Good