What is "comparative advantage"?

A The ability to produce more than another country

B The ability to produce a good at a lower opportunity cost than another country

C Having more natural resources

D Having a larger population

✓ Correct Answer: Option B

Comparative advantage is when a country can produce a good at a lower opportunity cost than another, forming the basis for trade.

💡 Why is B) the correct answer?

The correct answer to the question "What is "comparative advantage"?" is Option B: The ability to produce a good at a lower opportunity cost than another country.

The other options — A) The ability to produce more than another country, C) Having more natural resources, D) Having a larger population — are incorrect for this IB Exam Prep question. As explained above: Comparative advantage is when a country can produce a good at a lower opportunity cost than another, forming the basis for trade.

📚 About This IB Exam Prep Practice Question

This 3-level IB Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free IB Exam Prep practice test or use flashcards for spaced repetition review.

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What is "comparative advantage"?

✓ Correct Answer: Option B

📚 About This IB Exam Prep Practice Question

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