A nation has a ________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.
A) supreme advantage
B) primary efficiency
C) qualified advantage
D) comparative advantage

Question

Quizplus · Accepted Answer

This is the definition of comparative advantage, where a nation specializes in producing a particular good or service because it has a lower opportunity cost than producing other goods or services. This allows for trade between countries where they can exchange goods and services at a lower opportunity cost than producing them domestically.

A Nation Has a ________ in the Production of a Good