Traders should specialize in the good: that:
A) that they can produce with the lowest opportunity cost.
B) in which they have an absolute advantage.
C) in which their trading partner has a comparative advantage.
D) in which they do not have an absolute advantage.

Question

Quizplus · Accepted Answer

Traders should specialize in the good they can produce at the lowest opportunity cost, which is the principle of comparative advantage. This allows for more efficient production and trade.

Traders Should Specialize in the Good: That