An economy is said to have a comparative advantage in the production of a good if it can:
A) produce that good with more resources than another economy.
B) produce that good with a higher opportunity cost than another economy.
C) produce that good outside its production possibilities curve.
D) produce the good at a lower opportunity cost than another economy.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability of an economy to produce a particular good at a lower opportunity cost than another economy. In other words, a country has a comparative advantage when they can produce a good at a lower cost, in terms of other goods that have been given up, than another country.

An Economy Is Said to Have a Comparative Advantage in the Production