An economy is said to have a comparative advantage if it:
A)can produce more of all goods than another economy.
B)can produce less of all goods than another economy.
C)has the highest cost of producing a particular good.
D)has the lowest cost of producing a particular good.

Question

Quizplus · Accepted Answer

A comparative advantage is when an economy can produce a particular good or service at a lower opportunity cost than another economy. Therefore, the economy with the lowest cost of producing a particular good has the comparative advantage.

An Economy Is Said to Have a Comparative Advantage If