When a country has a comparative advantage in the production of a good, it means that the country: (A) can produce the good in fewer man hours than other countries (B) has the lower opportunity cost in the production of the good than other countries (C) can produce a better quality good than other countries (D) uses better technology to produce the good than other countries

UoH 2013 Question 34: Theories of international trade

When a country has a comparative advantage in the production of a good, it means that the country:

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Theories of international trade has come up 151 times in 6 exams since 2006.

This question is on Absolute and comparative advantage, part of Theories of international trade in International Economics.

Why countries trade: producing more cheaply in absolute terms, or at lower opportunity cost.

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