When a country is not able to produce a good more efficiently than other nations,but produces the good more efficiently than it does any other good,it is said to have a(n)________.
A) absolute advantage
B) resource advantage
C) first-mover advantage
D) comparative advantage

Question

Quizplus · Accepted Answer

A country with comparative advantage can produce a good more efficiently than other nations, but it still has a lower opportunity cost in producing that good compared to any other good. This means that the country should specialize in producing and exporting the good in which it has a comparative advantage and import other goods that it has a higher opportunity cost in producing.

When a Country Is Not Able to Produce a Good