If each person specializes in his area of comparative advantage and then trades for the goods he wants to have,everyone will be made better off.

Question

Quizplus · Accepted Answer

This statement reflects the concept of comparative advantage in economics, which suggests that by specializing in producing goods or services in which they have a lower opportunity cost, individuals, and countries can produce more efficiently and enjoy greater gains from trade. By trading with others who specialize in producing other goods or services in which they have a comparative advantage, individuals can acquire a greater variety of goods and services at lower costs than if they tried to produce everything themselves. This creates mutual gains and promotes economic growth and prosperity.

If Each Person Specializes in His Area of Comparative Advantage