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JAMB Economics 1993 Question 45

Question 45

International Trade

Comparative advantage implies that a country will specialize in producing the commodity

  1. A.with the highest opportunity cost
  2. B.for which output per worker is lower than in other countries
  3. C.with the lowest opportunity cost
  4. D.for which output per worker is the same with those of other countries
Show the answer and explanation

Answer: C (with the lowest opportunity cost)

Explanation

A country has a comparative advantage in the good it can produce at a lower opportunity cost than other countries.