If each nation specializes and produces those goods in which it has a(n)_______ advantage
And trades with other countries, global production will be _______.

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that each nation should produce the goods in which it has a lower opportunity cost compared to other nations and trade with them. This leads to specialization and allocation of resources in the most efficient way, ultimately increasing global production. Therefore, the correct choice is D.

If Each Nation Specializes and Produces Those Goods in Which