The principle of comparative advantage says that

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that a country (or an individual) should specialize in producing and exporting the goods or services that they can produce at a lower opportunity cost (relative to other countries/individuals) and import goods or services they produce at a higher opportunity cost. This results in an overall increase in efficiency and productivity, leading to a greater output of goods and services for the entire society. Therefore, option B is the correct answer as it directly states the principle of comparative advantage. Options A, C, D, and E are not relevant to the principle of comparative advantage.

The Principle of Comparative Advantage Says That