An economy is said to have a comparative advantage in the production of a good if it can produce that good:

A) with more resources than another economy.
B) with a higher opportunity cost than another economy.
C) outside its production possibilities curve.
D) at a lower opportunity cost than another economy.

Comparative Advantage

Comparative advantage is an economic principle that posits a country or entity can produce a good or service at a lower opportunity cost than another, leading to more efficient trade possibilities.

Opportunity Cost

Forgoing the possibility of profit from various alternatives by choosing a specific one.

Production

The method of merging different tangible and intangible inputs (like designs and expertise) to produce an item meant for consumption (known as the output).