In our simple trade model,having a comparative advantage in a product implies that a country will specialize completely in the product
A)with the highest opportunity cost.
B)with the lowest opportunity cost.
C)where total output is lower per worker-hour.
D)where total output is greater per worker-hour.

Question

Quizplus · Accepted Answer

Having a comparative advantage in a product means that a country can produce it at a lower opportunity cost than another country. Therefore, it is most efficient for the country to specialize in the product with the lowest opportunity cost. This does not necessarily mean specializing completely in the product, but rather producing more of the product than the other country.

In Our Simple Trade Model,having a Comparative Advantage in a Product