An economy's ability to produce goods and services at a lower opportunity cost than that of trade partners.*1 pointcomparative cost principlebalance of tradecomparative advantageabsolute advantage

When two countries with different opportunity costs engage in trade based on comparative advantage, the result is:  A. Both countries experiencing increased production and consumption  B. Both countries producing only goods they have an absolute advantage in  C. Both countries experiencing decreased production  D. Both countries producing the same goods

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs

How do countries develop a comparative advantage over their trading partners?A.By producing more essential goods than other countriesB.By having lower opportunity costs for producing certain goodsC.By lowering the trade deficits they have with their neighborsD.By reducing their reliance on foreign trade for essential goods

An absolute advantage existed when the country could produce a commodity with …........... per unit produced than could its trading partnera.high costsb.low costsc.minimum costd.conspicuous