The idea of comparative advantage implies that people or countries
A)can consume at a point outside their production possibilities frontier.
B)should specialise in the production of goods.
C)can gain from trading.
D)All of the above.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that by specializing in the production of goods where they have a lower opportunity cost and trading, people or countries can consume beyond their production possibilities frontier, thus gaining from trade.

The Idea of Comparative Advantage Implies That People or Countries