An economy that has the lowest opportunity cost for producing a particular good is said to have a(n):?

Question

absolute advantage.

comparative advantage.

production possibilities curve.

increasing opportunity cost.

Answer 1

comparative advantage

You should really know why, if you dedicate time to learning that principle, you will understand economic issues better than most people for the rest of your life, and support freer trade.

Answer 2

Comparative Advantage.

It can't be an absolute advantage because they only cite one variable.

Production possibilities curve is how you determine LOC, not the result of it.

Increasing opportunity cost is irrelevant, because you have already established that it is the lowest.