A country has comparative advantage if it produces a good at a lower
AAbsolute wage
BOpportunity cost
CSelling price
DTax rate paid
Answer & Solution
Correct answer: B. Opportunity cost
Comparative advantage means producing at a relatively lower opportunity cost than competitors.
Keep practising Basic Problems of an Economy and Role of Price Mechanism
Browse all Basic Problems of an Economy and Role of Price Mechanism questions for CA Foundation, or explore more Business Economics topics.
Related questions
Malthus argued that population grows exponentially while food supply growsAbsolute scarcity is the condition where human requirements areThe least-cost method of production relates to the problem ofMaking 100 tonnes of tea costs Country A 20 tonnes of wool. The cost per tonne of tea isAccounting profit differs from economic profit because accounting ignoresThe opportunity cost of using firm-owned resources is itsOut-of-pocket costs of a firm, easily identified, are calledOpportunity cost of a choice is the value of the