Question
Which statement defines comparative advantage?
When one country must pay more than other countries to trade for a product
When one country must buy resources from another country to make a product
When one country can produce a greater amount of a good than another country can
When one country can produce a good for a lower opportunity cost than another country can
When one country must pay more than other countries to trade for a product
When one country must buy resources from another country to make a product
When one country can produce a greater amount of a good than another country can
When one country can produce a good for a lower opportunity cost than another country can
Answers
GPT-4o mini
The statement that defines comparative advantage is:
**When one country can produce a good for a lower opportunity cost than another country can.**
Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost compared to others, which allows for more efficient trade and specialization.
**When one country can produce a good for a lower opportunity cost than another country can.**
Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost compared to others, which allows for more efficient trade and specialization.