In the context of trade Comparative Advantage is
Group of answer choices
when a country richer than other countries
when a particular country produces items with the lowest opportunity cost, items that best fit it's resources
when a country is poorer compared to other countries
when a country can produce a greater volume of high demand products compared to other countries
The correct answer is: when a particular country produces items with the lowest opportunity cost, items that best fit its resources.
In the context of trade, comparative advantage is when a particular country produces items with the lowest opportunity cost, items that best fit its resources. To understand comparative advantage, we need to consider the concept of opportunity cost.
Opportunity cost refers to the cost of giving up the next best alternative when making a choice. In the context of trade, it means that a country must consider what it would have to give up in order to produce a particular good or service.
Comparative advantage takes into account the opportunity cost of producing goods or services. It suggests that a country should specialize in producing goods or services in which it has a lower opportunity cost compared to other countries. By doing this, the country can produce more efficiently and effectively, thereby maximizing its resources and overall output.
In the given choices, the answer that aligns with the definition of comparative advantage is: "when a particular country produces items with the lowest opportunity cost, items that best fit its resources." This choice accurately reflects the concept of comparative advantage in international trade.