Under what circumstance does a country specialize in order to use resources more efficiently?
A) when there is comparative advantage in production
B) when there is an absolute advantage in production
C) when there is disincentive to trade with others
D) when there is a higher opportunity cost to trade with others

Question

Quizplus · Accepted Answer

When a country has comparative advantage in producing a certain good or service, it means that they can produce that good or service at a lower opportunity cost compared to other countries. By specializing in producing that good or service, the country can use its resources more efficiently and trade with other countries for goods or services where they do not have a comparative advantage. This leads to increased productivity and economic growth for the country.

Under What Circumstance Does a Country Specialize in Order to Use