A Nation Has a Comparative Advantage in a Good When

question 72

Multiple Choice

A nation has a comparative advantage in a good when it has a

• A) lower absolute cost of producing the good.
• B) higher opportunity cost of producing the good.
• C) lower opportunity cost of producing the good.
• D) higher absolute cost of producing the good.
• E) tariff in place protecting the producers of the good.

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Definitions:

Capital

Financial assets or the value of assets owned by a business, used in producing goods or services or invested to generate income.