According to the theory of comparative advantage:
A) every country can produce some good with a lower opportunity cost.
B) every country should produce goods that involve high opportunity costs.
C) some countries have a comparative advantage in producing every good.
D) some countries should import every good from other countries.

Question

Quizplus · Accepted Answer

The theory of comparative advantage states that every country can specialize in producing goods in which they have a lower opportunity cost. Therefore, every country has a comparative advantage in producing at least one good, even if they do not have an absolute advantage in the production of any good.

According to the Theory of Comparative Advantage