When the principle of comparative advantage is used to guide trade, then a country specializes in producing only
A) goods with the highest opportunity cost.
B) goods with the lowest opportunity costs.
C) goods for which production takes fewer worker-hour than another country.
D) goods for which production costs are more than average total costs.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that a country should specialize in producing goods for which it has the lowest opportunity cost, allowing for more efficient trade and resource allocation.

When the Principle of Comparative Advantage Is Used to Guide