What should a country do if it has a comparative advantage in a product?
A)It should import that product.
B)It should export that product.
C)It should keep the product for domestic use since it is relatively inexpensive to produce.
D)Without additional information, an import/export decision cannot be made.

Question

Quizplus · Accepted Answer

If a country has a comparative advantage in producing a product, it means that it can produce that product at a lower opportunity cost compared to other countries. Therefore, it should focus on producing and exporting that product to other countries where it can earn higher profits. This will lead to increased GDP, job creation, and a higher standard of living for its citizens. Importing the product would be counterintuitive as it would be more expensive for the country to produce the product domestically.

What Should a Country Do If It Has a Comparative