Two countries that specialize in their comparative advantage and trade with each other will increase: I. wages in both countries. II. total output in both countries. III. living standards in both countries.
A) I and II only
B) II and III only
C) II only
D) I, II, and III

Question

Quizplus · Accepted Answer

Countries that specialize in their comparative advantage and trade with each other will increase wages, total output, and living standards in both countries.

Two Countries That Specialize in Their Comparative Advantage and Trade