How Do Countries Know When They Have a Comparative Advantage

question 111

Multiple Choice

How do countries know when they have a comparative advantage in the production of a good?

• A) Government accountants collect cost data from countries and analyze it to find out which country has a comparative advantage in the production of which good.
• B) They know as the result of individuals trying to earn profits and buying low and selling high in the process.
• C) The United Nations Economic Conference Group analyzes cost data from countries and determines which country has a comparative advantage in the production of which good.
• D) There is not one major way that countries acquire this information.

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