The idea of comparative advantage is related to
A) the idea of opportunity cost.
B) the idea of absolute advantage.
C) using the worker with the most diverse sets of skills.
D) engineering efficiency.

Question

Quizplus · Accepted Answer

The concept of comparative advantage is based on the idea of opportunity cost, which refers to the benefits given up by choosing one alternative over another. It suggests that countries should specialize in producing goods in which they have a lower opportunity cost and trade with other countries to acquire goods in which they have a higher opportunity cost.

The Idea of Comparative Advantage Is Related to