Comparative advantage is the ability to
A) perform an activity at a lower opportunity cost.
B) determine who your best trading partners are.
C) determine the best use of capital goods.
D) convince others of the best choices to make in their own self-interest.

Question

Quizplus · Accepted Answer

Comparative advantage is the ability to perform an activity at a lower opportunity cost. This means that a country can produce a good or service at a lower opportunity cost than another country, making it more efficient to produce that good or service. By specializing in producing goods or services in which a country has a comparative advantage, and trading with other countries for other goods or services, both countries can benefit and be more efficient overall.

Comparative Advantage Is the Ability to