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AP® Macroeconomics

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Moderate

Comparative Advantage: Nation X vs. Nation Y

APMACR-1BJPKT

Nation Y has a comparative advantage in the production of a good compared to Nation X.

Therefore, Nation Y is experiencing

A

an absolute advantage in the production of the good.

B

the lowest marginal domestic opportunity cost when producing the good.

C

decreasing inflation and unemployment rates.

D

a socially optimal point for producing the good.

E

a decreasing exchange rate.