Question

When a country has a comparative advantage in producing a certain good, a. the country should import that good. b. the country should produce just enough of that good for its own consumption.

Answer 1

Answer:

None of the option is correct.

Explanation:

Principle of comparative advantage states that a country has a comparative advantage in producing a certain goods if the opportunity cost of producing those goods is lower than the other country. A country is exporting a commodity in which it has a comparative advantage and importing a commodity in which it has a comparative disadvantage.