Country A has a comparative advantage over Country B in the production of a particular good if Country A:
A)can produce the good at a higher opportunity cost than Country B.
B)is more self-sufficient than Country B.
C)can produce the good at a lower opportunity cost than Country B.
D)has a GDP higher than Country B.
E)has a GDP lower than Country B.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the opportunity cost of producing a good. A country has a comparative advantage in producing a good if it can produce that good at a lower opportunity cost than another country.

Country a Has a Comparative Advantage Over Country B in the Production