The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-A country has a comparative advantage when the opportunity cost of producing a good in terms of:

Question

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1
 
-A country has a comparative advantage when the opportunity cost of producing a good in terms of:

Quizplus · Accepted Answer

Comparative advantage is the ability of a country to produce a particular good or service at a lower opportunity cost than another country. Opportunity cost is the forgone output of other goods that could have been produced instead. Therefore, a country has a comparative advantage when its opportunity cost of producing a good is lower than that of other nations. Option D correctly describes this concept.

The Table Below Shows Units of Wheat and Cloth Produced