If a nation has a comparative advantage in the production of a good it,
A) can produce that good at a lower opportunity cost than its trading partner.
B) can benefit by restricting imports of that good.
C) can produce that good using fewer resources than its trading partner.
D) must be the only country with the ability to produce that good.

Question

Quizplus · Accepted Answer

If a nation has a comparative advantage in the production of a good, it means that it can produce that good at a lower opportunity cost than its trading partner. This means that the nation has to give up less of one good to produce one unit of the other good compared to its trading partner, making it more efficient in producing that good.

If a Nation Has a Comparative Advantage in the Production