When the Principle of Comparative Advantage Determines Trade, Then a Country

question 197

Multiple Choice

When the principle of comparative advantage determines trade, then a country will

• A) specialize only in that good with the highest opportunity cost.
• B) specialize only in goods with the lowest opportunity costs.
• C) specialize only in that good where output is less per worker hour than another country.
• D) specialize only in that good where production costs are more than average total costs.