A country has a comparative advantage over another in the production of gadgets if it can produce
A)more gadgets than can the other country.
B)more gadgets than can any other country.
C)gadgets more efficiently than it can produce any other good.
D)gadgets at lower opportunity cost than can the other country.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the opportunity cost of producing a good. A country has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost than another country. Therefore, option D is the correct answer.

A Country Has a Comparative Advantage Over Another in the Production