An economy that has the lowest cost for producing a particular good is said to have a(n):
A) technological advantage.
B) comparative advantage.
C) convex news production possibilities curve.
D) all of the above are correct and

Question

Quizplus · Accepted Answer

A country that can produce a good at a lower opportunity cost than another country is said to have a comparative advantage in producing that good. This is based on the concept of opportunity cost and not related to technological advantage or the shape of the production possibilities curve, so options A and C are not correct.

An Economy That Has the Lowest Cost for Producing a Particular