Openi, an island nation, is able to increase its textile production without having to compromise on the production of other materials. This is in contrast to other nations that need to lower the production of other materials to increase their textile production. In this scenario, Openi has a _____ in textile production.
A) comparative advantage
B) balance of payments surplus
C) positive balance
D) trade surplus

Question

Quizplus · Accepted Answer

Openi has a comparative advantage in textile production because it can increase its textile production without sacrificing the production of other goods, unlike other nations.

Openi, an Island Nation, Is Able to Increase Its Textile