Question

The principal concept behind comparative advantage is that a nation should (Points : 4) maximize its volume of trade with other nations. use tariffs and quotas to protect the production of vital products for the nation. concentrate production on those products for which it has the lowest domestic opportunity cost. strive to be self-sufficient in the production of essential goods and services.

Answer 1

The principal concept behind comparative advantage is that a nation should concentrate production on those products for which it has the lowest domestic opportunity cost. The correct option among all the options that are given in the question is the third option. I hope my answer helps you and it is the correct answer.