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Q. |
According to the principle of comparative advantage, |
A. | 7countries should specialize in the production of goods that they enjoy consuming. |
B. | countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners. |
C. | countries with a comparative advantage in the production of every good need not specialize. |
D. | countries should specialize in the production of goods for which they use fewer resources in production than their trading partners. |
Answer» B. countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners. |
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