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
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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