A nation should only import those goods for which it has
A)lower opportunity costs than its trading partner
B)higher opportunity costs than its trading partner
C)zero transaction costs
D)lower costs of production than its trading partner
E)absolute advantage in production compared to its trading partner

Question

Quizplus · Accepted Answer

A nation should import goods for which it has higher opportunity costs than its trading partner, according to the principle of comparative advantage. This allows the nation to specialize in producing goods for which it has a lower opportunity cost, leading to more efficient resource allocation and mutual benefits from trade.

A Nation Should Only Import Those Goods for Which It