Under What Condition Does a Nation Have a Comparative Advantage

question 9

Multiple Choice

Under what condition does a nation have a comparative advantage over another nation in the production of cars?

• A) if it can produce cars with more resources than the other country
• B) if it can produce cars at a lower opportunity cost than the other country
• C) if it can produce cars with fewer resources than the other country
• D) if it can produce cars at a higher opportunity cost than the other country

---

Definitions:

Nonprofits

Organizations that operate for charitable, educational, cultural, scientific, or social purposes rather than profit, reinvesting excess revenue in their mission.

True Needs

The basic requirements or necessities that are essential for an individual's well-being and survival.

Buying Things

The act of obtaining goods or services in exchange for money or other forms of payment.