According to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs.
A) trade and specialization
B) investment in capital goods
C) economic growth
D) exchange and consumption

Question

Quizplus · Accepted Answer

Trade and specialization are central to the theory of comparative advantage, which posits that by specializing in the production of goods and services in which they have a lower opportunity cost, countries can trade with others to mutual benefit, thereby increasing overall productivity.

According to the Theory of Comparative Advantage, ________ Raise(s) Productivity