Question

One country enjoys a comparative advantage over the other in producing oil when _______________.

• A. it has more oil than the other country
• B. it can produce oil at a lower opportunity cost than the other country
• C. it does not need to import oil
• D. it wants to export as much oil as possible

Answer 1

The correct option is B it can produce oil at a lower opportunity cost than the other country

One country enjoys a comparative advantage over the other in producing oil when it can produce oil at a lower opportunity cost than the other country .The country enjoys a greater advantage over other countries if the opportunity cost of producing oil in that country is less than others.