According to the principle of comparative advantage, total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that total output and consumption levels will be highest when goods are produced in nations according to their lowest opportunity costs. This means that a nation should specialize in producing goods that it can produce at a lower opportunity cost than other nations, and trade with other nations to obtain goods that it cannot produce efficiently. Therefore, the answer is A – opportunity costs are lowest.

According to the Principle of Comparative Advantage, Total Output and Consumption