According to the law of comparative advantage, what should be the distinguishing characteristics of the goods a nation imports?

(A) They have the lowest capital costs.

(B) They can be domestically produced cheaply.

(C) They cannot be domestically produced cheaply.

(D) They have the greatest domestic demand.

The correct answer is option C.

Explanation:

The law of comparative advantage states that a country will produce and export the commodity it has a comparative advantage in producing.

In other words, if the country can produce good cheaply or at a lower opportunity cost.

The good that cannot be produced cheaply or has a higher opportunity cost will be imported from the country that produces it cheaply.