Question

Which of the following statements is the best description of comparative advantage?
A. The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships.
B. A nation should produce those goods for which domestic demand is comparatively strong, and should import those goods for which domestic demand is comparatively weak.
C. The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services.
D. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations

Answer 1

Answer:

D. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost ( has greater efficiency in production) when compared with other countries.

I hope my answer helps you