The country with a comparative advantage in the production of good X is the one that:
A) has the greatest technical efficiency in producing good X.
B) has the greatest supply of the natural resources used in producing good X.
C) can produce good X with the least labor.
D) can produce good X at the lowest opportunity cost.

Question

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at the lowest opportunity cost, not by absolute measures like technical efficiency or resource abundance.

The Country with a Comparative Advantage in the Production of Good