Having a comparative advantage means a nation can
A) produce the good at a point beyond its PPF.
B) benefit from trade.
C) produce at a higher opportunity cost.
D) produce more of the good.
E) produce without incurring an opportunity cost.

Question

Quizplus · Accepted Answer

Comparative advantage means that a nation can produce a good or service at a lower opportunity cost than another nation. This allows the nation to benefit from trade by specializing in producing the goods or services that they have a comparative advantage in, and trading for goods or services that they have a higher opportunity cost producing themselves.

Having a Comparative Advantage Means a Nation Can