Final answer:
Comparative advantage is when a country can produce a good or service at a lower opportunity cost than other countries, leading to trade benefits. The correct answer to the student's question is option 1. This specializes production and increase global production and consumption.
Step-by-step explanation:
The concept of comparative advantage is a key principle in international trade and economics. It describes the situation where a country can produce a good or service at a lower opportunity cost than other countries. The opportunity cost is what is foregone to produce a particular good or service, meaning the value of the next best alternative use of the resources.
A country achieves comparative advantage when it can specialize in producing goods that it can make more efficiently and at a lower opportunity cost compared to others. This specialisation allows countries to trade with one another, exporting the goods in which they have a comparative advantage and importing those in which another country has a comparative advantage. This mutually beneficial trade leads to a rise in overall global production and higher levels of consumption for all trading partners.
Applying this framework to the student's question, the correct option is: 1) It is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries. This is because producing at a lower opportunity cost allows a country to focus its resources on producing and exporting goods efficiently, while importing goods that are cheaper to produce elsewhere.