According to ________, trade between two countries allows each of the trading countries to allocate its resources most efficiently.
A) the Heckscher-Ohlin theorem
B) the theory of absolute advantage
C) the General Agreement on Tariffs and Trade
D) the theory of comparative advantage

Question

Quizplus · Accepted Answer

The theory of comparative advantage explains how trade between two countries allows each country to allocate its resources most efficiently by specializing in the production of goods for which it has a comparative advantage, leading to increased overall efficiency and economic welfare.

According to ________, Trade Between Two Countries Allows Each of the Trading