If Germany can produce cars at a lower opportunity cost than any other nation, Germany is said to have a(n) _______ in the production of cars.

Question

Quizplus · Accepted Answer

The concept of comparative advantage states that a country should specialize in producing goods that it can produce at a lower opportunity cost than other countries. If Germany can produce cars at a lower opportunity cost than any other nation, then it has a comparative advantage in the production of cars. Therefore, the correct answer is A) comparative advantage.

If Germany Can Produce Cars at a Lower Opportunity Cost