When a Country Has a Lower Opportunity Cost in Producing

Multiple Choice

When a country has a lower opportunity cost in producing a good than any other country,

A) It has an absolute advantage in producing the good.
B) It has favorable terms of trade in producing the good.
C) Consumption possibilities will increase with specialization and trade.
D) Production possibilities are no longer limiteD.Consumption possibilities increase with specialization and trade since a nation can buy some goods cheaper abroad and sell certain domestically produced goods at higher prices abroad.