When a nation has a comparative advantage in the production of a particular good,
A)the opportunity cost of producing that good is higher than that of other goods.
B)the comparative advantage encourages self- sufficiency.
C)the nation tends to avoid specialisation.
D)the nation can gain from trade.

Question

Quizplus · Accepted Answer

A nation with a comparative advantage in producing a good can produce it at a lower opportunity cost than other nations, allowing it to benefit from trade by specializing in that good and exchanging it for others.

When a Nation Has a Comparative Advantage in the Production