Question 9(Multiple Choice Worth 4 points) (03.07 LC) 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

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Question 9(Multiple Choice Worth 4 points) (03.07 LC) 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

Answer 1

## Step 1The concept of comparative advantage is a fundamental principle in economics. It refers to the ability of a country to produce a particular good or service at a lower opportunity cost than another country. ## Step 2The opportunity cost is the cost of the next best alternative that is given up when a decision is made. In this context, it refers to the cost of producing one good over another.## Step 3Comparative advantage is not about producing more of a good or service, or paying more or less to trade for a product. It is about producing a good or service at a lower opportunity cost than another country.

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