If the country of Zebina has a comparative advantage in the production of wheat over the country of Almia, then:
A) the opportunity cost of producing wheat is higher in Zebina than in Almia.
B) the opportunity cost of producing wheat is lower in Zebina than in Almia.
C) neither Almia nor Zebina should specialize in the production of wheat.
D) Zebina will export all of its wheat to Almia.

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that a country has a comparative advantage in producing a good if it has a lower opportunity cost for that good compared to other countries. Therefore, if Zebina has a comparative advantage in wheat production, it means the opportunity cost of producing wheat is lower in Zebina than in Almia.

If the Country of Zebina Has a Comparative Advantage in the Production