A Nation Has a Comparative Advantage in the Production of Cars

Multiple Choice

A nation has a comparative advantage in the production of cars over another nation if:

A) it can produce cars with fewer resources than the other country.
B) it can produce cars at a lower opportunity cost than the other country.
C) it can produce cars at a higher opportunity cost than the other country.
D) it can produce cars at the same opportunity cost and its consumers have a stronger preference for cars than consumers in the other country.
E) it is more self-sufficient in all areas of production, including automobile manufacturing.