If people specialise in activities in which they have a comp

If people specialise in activities in which they have a comparative advantage, they:

Select one:

a. can acquire goods and services at the highest possible cost

b. will acquire goods, but not services, at the lowest possible cost

c. will be engaging in monetary exchange

d. can acquire goods and services at the lowest possible cost

Solution

A country has a comparative advantage in a good for which the opportunity cost of producing that good is lower compared to other goods. If people specialises in activities in which they have comparative advantage and starts trading with others for the goods in which they do not have comparative advantage, they can acquire the goods at the lowest possible cost and also they can avail the services which are required to produce the tradable good at the lowest possible cost.

d. can acquire goods and services at the lowest possible cost