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When does one country have a comparative advantage over another country?

  • Question 4b of 10 - Specialization

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: When does one country have a comparative advantage over another country?
  • Answers:
  1. When its trade barriers are higher
  2. When the opportunity cost of its production is lower
  3. When its infrastructure is more advanced
  4. When its workers don't need to be paid as much

The correct answer is: When the opportunity cost of its production is lower. Comparative advantage comes when a country gives up less in order to produce a particular good.

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