states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods from other nations that they produce more efficiently.

Question

Quizplus · Accepted Answer

This is the definition of comparative advantage, which is a fundamental principle in international trade. It is based on the idea that each country has a different opportunity cost for producing a certain good, and by specializing in what they are most efficient at producing, both countries can benefit and increase their overall output and economic welfare.

States That a Nation Should Produce and Sell Goods to Other