A Country with a Comparative Advantage in Producing Computer Chips

Multiple Choice

A country with a comparative advantage in producing computer chips

A) Has a lower opportunity cost of producing computer chips than its trading partners.
B) Can produce computer chips with fewer resources than its trading partners.
C) Can achieve better terms of trade in selling computer chips than its trading partners.
D) Has greater capacity to produce computer chips, given its resources, than do its trading partners. Comparative advantage means one can produce a particular good at a lower opportunity cost than others.