The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n)________ advantage.

Question

Quizplus · Accepted Answer

A comparative advantage occurs when one person or nation has a lower opportunity cost of producing a good than another. This means they can produce one good at a lower cost of producing the other good, allowing for trade that benefits both parties involved. This is different from absolute advantage, which is when one person or nation can produce a good more efficiently or effectively than another, without taking into account the opportunity cost. Therefore, the answer is D - comparative advantage.

The Ability of One Person or Nation to Produce a Good