What economic principle refers to the ability of a country to produce a good at a lower opportunity cost than another country?

The concept that describes a country's ability to produce a good at a lower opportunity cost than another country is known as comparative advantage. This principle is fundamental in international trade, as it dictates how countries can benefit from specializing in the production of goods and services for which they have a comparative advantage and then engaging in trade with others.

When a country has a comparative advantage in producing a particular good, it means that it can produce that good more efficiently relative to other goods, sacrificing less in terms of alternative products. This leads to more efficient allocation of resources on a global scale, as countries focus on producing what they can make relatively better than their trading partners, resulting in increased overall production and consumption.

In contrast, absolute advantage refers to the ability of a country to produce more of a good than another country using the same resources, which is a different concept from the opportunity cost focus of comparative advantage. Trade advantage and economic efficiency are broader terms that do not specifically define the principle pertaining to opportunity costs in production. Thus, comparative advantage is the most accurate and relevant term for this economic principle.