Categories: Economics WAEC

The principle of comparative advantage encourages a country to

A. produce only consumer goods
B. engage in trade if it can produce a commodity at a lower cost
C. specializes in the production of all goods
D. try as much as possible to be self-sufficient

Correct Answer:

Option B = engage in trade if it can produce a commodity at a lower cost

Explanation

Comparative advantage is the edge a country has over its trading partners in the production of a particular good or service at a lower opportunity cost.

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