When the principle of comparative advantage is used to guide trade, then a country will specialize by producing only

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that countries should specialize in producing goods with the lowest opportunity costs. This means that a country should produce the goods in which they have a lower opportunity cost compared to other countries. By doing so, each country can trade goods with other countries and achieve a higher level of consumption for all parties involved.

When the Principle of Comparative Advantage Is Used to Guide