The concept of comparative advantage advocates the analysis of opportunity costs in choosing those goods and services to produce at home.

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that countries should specialize in producing those goods and services that they can produce most efficiently and at the lowest opportunity cost. This requires analyzing the opportunity cost of producing one good in terms of what must be given up in producing another good.

The Concept of Comparative Advantage Advocates the Analysis of Opportunity