When a nation has a comparative advantage in the production of a particular good,
A) the nation tends to avoid specialisation.
B) the opportunity cost of producing that good is higher than that of other goods.
C) the comparative advantage encourages self- sufficiency.
D) the nation can gain from trade.

Question

Quizplus · Accepted Answer

A nation with a comparative advantage in producing a particular good can produce it at a lower opportunity cost than other nations, which makes trade beneficial as it allows the country to specialize in producing that good and trade for others, thereby gaining from the exchange.

When a Nation Has a Comparative Advantage in the Production