Question

When a nation is specializing in the production of a product for which it is the least-cost producer compared to other nations, it is:

A. Achieving full employment of resources in the nation
B. Specializing according to its comparative advantage
C. Creating a coincidence of wants for the money economy
D. Maximizing exchange between business and household sectors

Answer 1

Answer: B

Explanation: the country has a comparative advantage over the other countries in the sense that same production that would cost other countries a huge amount would cost them just a little. This could be an advantage over the other countries in the international market. Hence, focusing on the sales of these goods is like wielding your core advantages over the others that don't have that advantage as well. And this is hugely profitable in the long run.

Answer 2

B. Specializing according to its comparative advantage

Step-by-step explanation:

Comparative advantage is an economic term that describes a country's ability to produce a certain product or offer a certain service, at a lower opportunity cost than its competitors. If a country is the least-cost producer compared to other nations, it is fair to assume that it has a comparative advantage. Therefore, the country is specializing according to its comparative advantage .