When the industries in a country tend to produce products that have the lowest opportunity cost relative to other countries, the country most likely has a _____.
A) comparative advantage
B) balance of payments surplus
C) positive balance
D) trade surplus

Question

Quizplus · Accepted Answer

A country has a comparative advantage when it can produce goods at a lower opportunity cost than other countries, allowing it to specialize in those goods and trade effectively.

When the Industries in a Country Tend to Produce Products