-Refer to Exhibit 34-4.Country 1 has a comparative advantage in the production of __________,and country 2 has a comparative advantage in the production of __________.
A) good A; good B
B) good B; good A
C) both goods; neither good
D) neither good; both goods
E) neither good; neither good

Question

-Refer to Exhibit 34-4.Country 1 has a comparative advantage in the production of __________,and country 2 has a comparative advantage in the production of __________.
A) good A; good B 
B) good B; good A 
C) both goods; neither good 
D) neither good; both goods 
E) neither good; neither good

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Without the specific details from Exhibit 34-4, the general principle is that if Country 1 has a comparative advantage in one good, it can produce it at a lower opportunity cost than Country 2, and vice versa for the other good.