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What is the term used to describe a situation where a country can produce a good at a lower opportunity cost than another country?
  • a)
    Comparative Advantage
  • b)
    Absolute Advantage
  • c)
    Trade Surplus
  • d)
    Trade Deficit
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the term used to describe a situation where a country can prod...
Comparative Advantage is the ability of a country to produce a good or service at a lower opportunity cost (in terms of other goods sacrificed) than another country. It is the foundation of international trade as it encourages countries to specialize in producing goods they can produce more efficiently than others.
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What is the term used to describe a situation where a country can produce a good at a lower opportunity cost than another country?a)Comparative Advantageb)Absolute Advantagec)Trade Surplusd)Trade DeficitCorrect answer is option 'A'. Can you explain this answer?
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