When nations trade, the result would most likely be a(n):
A) increase in total production, which would benefit every nation involved.
B) increase in total production, which would benefit only the wealthiest nations.
C) decrease in total production, which would benefit only the wealthiest nations.
D) decrease in total production, which would benefit countries that do not have an absolute advantage.

Question

Quizplus · Accepted Answer

When nations trade, they can specialize in producing goods and services that they are relatively better at producing. This leads to an increase in total production, as each nation can produce more efficiently. As a result, all nations involved benefit from the increased total production.

When Nations Trade, the Result Would Most Likely Be A(n)