A country has a comparative advantage in the production of a good if it can
A)tradeoff producing the good for another good.
B)produce the good on and remain on its production possibilities frontier.
C)produce the good at the lowest opportunity cost.
D)produce more of the good most efficiently.
E)produce more of the good than another country.

Question

Quizplus · Accepted Answer

A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost compared to other countries. This means it sacrifices less of other goods to produce it.

A Country Has a Comparative Advantage in the Production of a Good