Asked by Mariela Nieto on May 31, 2024

verifed

Verified

If a nation has a comparative advantage in the production of X, this means the nation

A) cannot benefit by producing and trading this product.
B) must give up less of other goods than other nations in producing a unit of X.
C) has a production possibilities curve identical to those of other nations.
D) is not subject to increasing opportunity costs.

Comparative Advantage

The principle that holds a party can produce some goods at a lower relative cost than another, promoting beneficial trade.

Other Goods

The term refers to any goods that are not directly under consideration but can still affect the market situation, such as substitute or complementary goods.

Increasing Opportunity

Increasing opportunity involves the growth or expansion of choices and avenues through which individuals or organizations can achieve desired goals or outcomes.

  • Acquire knowledge on the core principles of international commerce and the idea of comparative advantage.
  • Gaining knowledge of the groundwork and limitations for beneficial exchanges among countries.
verifed

Verified Answer

JP
Jnaya PowellJun 06, 2024
Final Answer :
B
Explanation :
Comparative advantage occurs when a country can produce a good at a lower opportunity cost than other countries. This means it sacrifices less of other goods to produce a unit of X, enabling it to benefit from trade by specializing in the production of X.