The United States has a comparative advantage in producing aeroplanes if
A) it has a larger quantity of skilled workers than do other nations.
B) it can produce them at a lower opportunity cost than can other nations.
C) it can produce them at a lower dollar cost than can other nations.
D) it can produce a larger quantity than can other nations.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than other countries. It's not about the absolute cost or quantity of production, but rather the efficiency in terms of forgone opportunities to produce other goods.

The United States Has a Comparative Advantage in Producing Aeroplanes