The law of comparative advantage explains why a nation will benefit from trade when
A) it exports more than it imports.
B) its trading partners are experiencing offsetting losses.
C) it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
D) it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

Question

Quizplus · Accepted Answer

The law of comparative advantage states that a nation will benefit from trade by exporting goods for which it has a lower opportunity cost and importing goods for which it has a higher opportunity cost.

The Law of Comparative Advantage Explains Why a Nation Will