Which of the following statements about trade is true?
A) Unrestricted international trade benefits every person in a country equally.
B) Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.
C) People that are skilled at all activities cannot benefit from trade because they do not have an opportunity cost in production.
D) Trade can benefit everyone in society because it allows people to specialize in activities in which they have an absolute advantage.

Question

Quizplus · Accepted Answer

Trade allows people to specialize in activities in which they have a comparative advantage, which means they can produce a certain good or service at a lower opportunity cost than others. This allows for increased efficiency and productivity, leading to greater economic growth and benefits for all members of society. However, unrestricted trade may not benefit every person equally and there may be certain groups or industries that are negatively affected.

Which of the Following Statements About Trade Is True