Which of the following statements is true?

Question

Quizplus · Accepted Answer

Comparative advantage is based on the concept of opportunity cost, meaning the cost of producing one good in terms of the alternative goods that must be forgone. A nation has a comparative advantage in producing a good if it has a lower opportunity cost of production compared to another nation. Therefore, statement B is true. Statement A is partly true but omits the aspect of opportunity cost. Statement C is false because having more resources does not guarantee advantage in producing a specific good. Statement D is also partly true but does not account for the concept of opportunity cost.

Which of the Following Statements Is True