The law of comparative advantage states that a country should specialize in the production of a commodity
Question 1 Report
The law of comparative advantage states that a country should specialize in the production of a commodity
Answer Details
The law of comparative advantage states that a country should specialize in producing the goods or services that they can produce at a lower opportunity cost than their trading partner. In other words, a country should focus on producing the goods or services that it can make relatively efficiently, compared to other goods or services, even if it doesn't have an absolute advantage in producing any of them. This allows both countries to trade with each other, resulting in overall economic growth and prosperity. So, the option that best represents the law of comparative advantage is "in which its opportunity cost is lower than that of the trade partner."
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning