When nations begin to specialize in their areas of comparative advantage and then trade with the rest of the world,the result is that
A)the average standard of living in the world will go up and everyone will be better off.
B)the world moves from a point on the global PPC to a point outside the curve.
C)the average standard of living in the world will go down but some producers will be better off.
D)the average standard of living in the world will go up but producers of some goods and services will be worse off.

Question

Quizplus · Accepted Answer

Specialization and trade based on comparative advantage generally increase the average standard of living by allowing more efficient production and consumption. However, some producers may be worse off due to increased competition.

When Nations Begin to Specialize in Their Areas of Comparative