If a country has a(n) _____ advantage in the production of a particular good, its opportunity cost of producing that good is lower than the opportunity cost for the trading partner for producing the same good.
A) comparative
B) absolute
C) interim
D) mercantilist
E) None of the above

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than its trading partners. This concept is key in international trade theory, suggesting that even if one country is less efficient in producing all goods (absolute advantage), it can still benefit from specializing in goods for which it has a comparative advantage.

If a Country Has A(n) _____ Advantage in the Production