The theory of comparative advantage suggests:

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a country should specialise in producing the goods and services that it can produce at a lower opportunity cost compared to other countries. This means that a country should produce the goods and services that it is relatively more efficient at producing and import those goods that it is relatively less efficient at producing. So, option C is the correct answer. Options A and B are incorrect, as they suggest that a country should either not import or import everything, which is not what the theory of comparative advantage states. Option D is incorrect, as the theory of comparative advantage is concerned with the opportunity cost of producing different goods, not the absolute cost.

The Theory of Comparative Advantage Suggests