India has a comparative advantage compared to Spain in the production of clothing if
A) India can produce clothing at a lower monetary cost than Spain can.
B) India can produce clothing using fewer resources than Spain can.
C) the demand for clothing is higher in India than in Spain.
D) India can produce clothing at a lower cost in terms of other goods than Spain can.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by the opportunity cost of producing goods. India has a comparative advantage if it can produce clothing at a lower opportunity cost compared to Spain, meaning it sacrifices less of other goods to produce clothing.

India Has a Comparative Advantage Compared to Spain in the Production