A country will have a comparative advantage in goods whose production:
A) uses its relatively most abundant resource.
B) has a higher wage rate than the other country.
C) is not in high demand relative to other countries products.
D) intensively uses its relatively scarce factor of production.
E) does not use either labor or capital.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than another country. This often happens when the production of the good uses the country's most abundant resources, making it more efficient at producing that good compared to others.

A Country Will Have a Comparative Advantage in Goods Whose