Countries tend to have a comparative advantage in and export goods:
A) that employ the country's scarce resource.
B) that employ the country's relatively abundant resource.
C) that the other country has in abundance.
D) that the other country is counterfeiting.
E) None of the above

Question

Quizplus · Accepted Answer

Countries tend to have a comparative advantage in goods that utilize their relatively abundant resources, as this allows them to produce these goods more efficiently and at a lower cost than countries where these resources are scarce.

Countries Tend to Have a Comparative Advantage in and Export