The ability to produce a good at a lower opportunity cost than someone else is called

Question

Quizplus · Accepted Answer

The term "comparative advantage" refers to the ability of a country or individual to produce a particular good at a lower opportunity cost than another country or individual. In other words, it is not about who can produce more of a good, but who can produce it most efficiently in terms of the opportunity cost of producing other goods. Therefore, option B is the correct answer. Option A ("competitive production") is not a widely accepted term in economics. Option C ("selective advantage") is not a recognized economic term. Option D ("absolute advantage") refers to the ability to produce more of a good than someone else, which is not the same as comparative advantage.

The Ability to Produce a Good at a Lower Opportunity