The principle of comparative advantage encourages a country to
ECONOMICS
WAEC 2020
The principle of comparative advantage encourages a country to
- A. produce only consumer goods
- B. engage in trade if it can produce a commodity at a lower cost
- C. specializes in the production of all goods
- D. try as much as possible to be self-sufficient
Correct Answer: B. engage in trade if it can produce a commodity at a lower cost
Explanation
Comparative advantage is the edge a country has over its trading partners in the production of a particular good or service at a lower opportunity cost.
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