Question

The ability of one person or nation to produce a good at a lower opportunity cost than another is called a(n): a. absolute advantage. b. comparative advantage. c. specific advantage. d. market advantage. e. specialization advantage.

Answer 1

b. Comparative advantage

Step-by-step explanation:

The ability of one person or nation to produce a good at a lower opportunity cost than another is called Comparative advantage which means a country can produce a good comparatively more economical than other countries. This theory of comparative advantage states that if countries are specialized in producing goods where they have a lower opportunity cost, then there will be a rise in economic welfare.