The ability to produce a good at a lower opportunity cost than others is called a(n)__________ advantage.
A) complementary
B) comparative
C) natural
D) indigenous

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to produce a good or service at a lower opportunity cost than others. It allows countries to specialize in producing what they are relatively good at producing, and then trade with each other to benefit from each other's strengths. Complementary advantage refers to the ability of countries to produce goods that are helpful for making other goods. Natural advantage refers to the resources and climate that a country may have that makes it better suited for producing certain products. Indigenous advantage refers to the knowledge or skills that a specific group of people has developed over time.

The Ability to Produce a Good at a Lower Opportunity