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

Question

Quizplus · Accepted Answer

When a nation has a comparative advantage in the production of a particular good, it means it can produce that good at a lower opportunity cost compared to other nations. This encourages the nation to specialize in the production of that good and trade for other goods, leading to gains from trade.

When a Nation Has a Comparative Advantage in the Production