Home » Past Questions » Economics » The law of comparative advantage states that a country should specialize in the ...

The law of comparative advantage states that a country should specialize in the ...


Question

The law of comparative advantage states that a country should specialize in the production of a commodity

Options

A)
for which local demand is greatest
B)
in which its oportunity cost is lower than that of the trade partner
C)
for which foreign demand is greatest
D)
for which there is abundant supply of raw materials

The correct answer is B.


More Past Questions:


Discussion