What does comparative advantage reflect?
A)productivity.
B)relative opportunity cost.
C)efficiency.
D)terms of trade advantage.

Question

Quizplus · Accepted Answer

Comparative advantage reflects the relative opportunity cost of producing a good or service. It is the ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors. Therefore, option B is the correct choice. Options A, C, and D, although related to trade, do not accurately reflect what comparative advantage represents.

What Does Comparative Advantage Reflect