Comparative advantage means a country should specialise in the good for which it has
Answer and explanation
Correct answer: B. the lower opportunity cost
- Step 1: Trade benefits both countries when each specialises where its opportunity cost is lower. Answer: the lower opportunity cost. Why not the others: the higher absolute output: Absolute advantage is a different idea. the higher price abroad: Prices are not the test. the larger workforce: Size of workforce is not the test.
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