What matters most in determining the efficient distribution of production over the world is:

Question

Quizplus · Accepted Answer

Comparative advantage is the key factor in determining the efficient distribution of production globally. It refers to the ability of a country to produce a good at a lower opportunity cost than another country. This concept suggests that countries should specialize in producing goods where they have a comparative advantage, leading to more efficient production and trade benefits for all countries involved. Absolute advantage, efficiency, and the allocation of resources are important, but comparative advantage specifically addresses how production should be distributed internationally for maximum efficiency.

What Matters Most in Determining the Efficient Distribution of Production