World output will be maximized if each country:

Question

Quizplus · Accepted Answer

Specializing in producing goods in which a country has a comparative advantage allows for the most efficient use of resources and can lead to increased productivity and lower costs. This results in a larger volume of goods being produced and higher world output overall. Attempting to be self-sufficient or focusing solely on goods in which a country has an absolute advantage can lead to inefficiencies and reduced output. Reducing consumption possibilities or equalizing consumption possibilities do not necessarily lead to increased output or efficiency.

World Output Will Be Maximized If Each Country