140696
AssignmentMultiple Choice

International Trade

Question 140696 • IL-Economics

Comparative advantage means the ability to produce a good or service

Answer
A
more efficiently than another country.
B
with a lower opportunity cost than another country.
C
less efficiently than another country.
D
with a higher opportunity cost than another country.

Explanation

Comparative advantage is based on opportunity cost: a producer has it when making a good requires giving up less of other goods than it does for another producer. Therefore, the correct choice is “with a lower opportunity cost than another country.” Producing more efficiently in absolute terms describes absolute advantage, not comparative advantage.

AI-written and checked against the verified answer.

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