Posted by: Pdfprep
Post Date: January 26, 2021
According to the Theory of Comparative Advantage, which of the following reasons justifies a country to export a product?
A . The exporting country produces the product utilizing less labor than other countries.
B . The exporting country’s wage rate in producing the good is lower than in other countries.
C . The exporting country’s productivity is higher in producing the good than the productivity of other countries.
D . The exporting country’s cost of producing the good, relative to other goods, is at least as low as in other countries.
Answer: A
Leave a Reply