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If a Nation Can Produce a Good or Service at the Lowest

Question 17

Multiple Choice

If a nation can produce a good or service at the lowest opportunity cost, then it


A) does not want to export the good because the low cost means it makes only a low profit.
B) will definitely import the good because it can beat other countries' prices.
C) is best for the nation to not trade the good internationally.
D) might export or import the good, depending on whether or not it has a comparative advantage in the production of the good.
E) can sell the product at a lower price than other nations.

Correct Answer:

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