The law of comparative advantage suggests that
A) curtailing U.S. trade with other countries would make U.S. consumers better off.
B) everyone would be better off if they were self-sufficient.
C) countries will tend to import commodities that they can produce at a relatively low opportunity cost.
D) countries will tend to import commodities that they can produce at a relatively high opportunity cost.

Question

Quizplus · Accepted Answer

The law of comparative advantage suggests that countries should specialize in producing goods for which they have a lower opportunity cost and import goods for which they have a higher opportunity cost.

The Law of Comparative Advantage Suggests That