A country has a comparative advantage in the production of a good if it can
A) produce more of the good than another country.
B) produce more of the good most efficiently.
C) produce the good on and remain on its production possibilities frontier.
D) tradeoff producing the good for another good.
E) produce the good at the lowest opportunity cost.

Question

Quizplus · Accepted Answer

A country has a comparative advantage in the production of a good if it can produce the good at the lowest opportunity cost. This means that the country must give up fewer resources and production of other goods to produce the given good. This concept is the basis of international trade and specialization.

A Country Has a Comparative Advantage in the Production of a Good