When the principle of comparative advantage is used to guide trade, then a country will specialize by producing only
A) goods with the highest opportunity cost.
B) goods with the lowest opportunity costs.
C) goods for which production takes fewer worker-hour than another country.
D) goods for which production costs are more than average total costs.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that a country will specialize in producing goods for which it has the lowest opportunity costs compared to other countries. This allows for more efficient production and trade, benefiting all parties involved.

When the Principle of Comparative Advantage Is Used to Guide