Comparative advantage refers to countries' relative efficiencies in producing different products

Question

Quizplus · Accepted Answer

Comparative advantage is a concept in economics that refers to the ability of one country to produce a specific good or service at a lower opportunity cost than another country. It is based on the relative efficiencies of production, as each country focuses on producing the goods or services in which it has the greatest advantage. This results in increased efficiency and productivity, leading to overall economic growth and prosperity.

Comparative Advantage Refers to Countries' Relative Efficiencies in Producing Different