To say that the U.S. possesses a comparative advantage over Japan in the production of certain types of music implies that (for a similar quality of music) the:
A) opportunity cost of production is less in Japan.
B) absolute cost of production is less in the U.S.
C) absolute cost of production is less in Japan.
D) opportunity cost of production is less in the U.S.
E) opportunity cost of production is higher in the U.S.

Question

Quizplus · Accepted Answer

Comparative advantage occurs when a country can produce a good at a lower opportunity cost than another country. If the U.S. has a comparative advantage over Japan in producing certain types of music, it means the U.S. sacrifices less of other goods to produce this music compared to Japan.

To Say That the U