The theory of comparative advantage suggests that nations should produce a good if they
A) have the lowest opportunity cost.
B) have the lowest wages.
C) have the most resources.
D) can produce more of the good than any other nation.

Question

Quizplus · Accepted Answer

The theory of comparative advantage states that nations should specialize in producing goods for which they have the lowest opportunity cost, allowing for more efficient global production and trade.

The Theory of Comparative Advantage Suggests That Nations Should Produce