The industries in most countries tend to produce products for which they have a(n) _____ when compared to other countries.
A) absolute advantage
B) higher opportunity cost
C) higher production cost
D) comparative advantage

Question

Quizplus · Accepted Answer

Countries tend to specialize in and trade products for which they have a comparative advantage, meaning they can produce the good(s) at a lower opportunity cost than another country. This allows for both countries to benefit from trade by producing and exporting what they are good at, and importing goods that they may not have a comparative advantage in.

The Industries in Most Countries Tend to Produce Products for Which