To obtain the gains available from comparative advantage, individuals or countries must do more than specialize; they must also
A) invest.
B) trade.
C) engage in research and development.
D) save.

Question

Quizplus · Accepted Answer

Specialization alone is not enough to fully realize the gains from comparative advantage. To fully benefit, individuals or countries must engage in trade and exchange their specialized goods and services with others who have different comparative advantages. Through trade, both parties can enjoy a greater variety of goods and services at a lower cost than they would be able to produce on their own.

To Obtain the Gains Available from Comparative Advantage, Individuals or Countries