The case for free trade is based on the
A) theory of balanced growth.
B) theory of absolute advantage.
C) argument for a diversified economy.
D) theory of comparative advantage.

Question

Quizplus · Accepted Answer

The case for free trade is primarily based on the theory of comparative advantage, which suggests that countries should specialize in producing goods where they have a lower opportunity cost, leading to more efficient global production and trade benefits.

The Case for Free Trade Is Based on the