Which of the following is true?
A) Specialization and trade leads to mutual gains for countries.
B) Protectionism (i.e., policies that limit trade in certain goods) promotes both economic prosperity and greater employment.
C) Countries that have a lot of resources, like the United States, are always hurt by trade.
D) Countries will have a higher standard of living when they produce as many goods as possible domestically.

Question

Quizplus · Accepted Answer

Specialization and trade allow countries to focus on producing goods where they have a comparative advantage, leading to more efficient production and mutual gains from trade.

Which of the Following Is True