Question

Which economic term refers to the situation where one country can manufacture and export automobiles at a lower cost than its competitors? opportunity cost comparative advantage inflation consumer price index (CPI) gross domestic product (GDP)

Answer 1

Comparative advantage is the ability of any given economic actor (eg a country) to produce goods and services at a lower opportunity cost than other economic actors (eg other countries). This enables the country with the comparative advantage to export the product at a lower cost than its competitors. Therefore, the correct answer is comparative advantage.

Answer 2

Comparative advantage is the term.