An economy is said to have a comparative advantage in the production of a good if it can produce that good:
A)with more resources than another economy.
B)with a higher opportunity cost than another economy.
C)outside its production possibilities curve.
D)at a lower opportunity cost than another economy.

Question

Quizplus · Accepted Answer

Comparative advantage is based on the opportunity cost of producing a good. An economy has a comparative advantage in the production of a good if it can produce that good at a lower opportunity cost than another economy.

An Economy Is Said to Have a Comparative Advantage in the Production