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

question 214

Multiple Choice

A country possesses a comparative advantage in the production of a good if

• A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners.
• B) it possesses an absolute advantage in the production of this good.
• C) it is able to produce more of this good per hour than can any other country.
• D) all of the above.