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

Question

Quizplus · Accepted Answer

A country has a comparative advantage when it can produce a particular good at a lower opportunity cost than another country. This means that the country has the lowest cost of producing a particular good, compared with other economies. Therefore, option D is the correct choice.

An Economy Is Said to Have a Comparative Advantage If