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

Question

Quizplus · Accepted Answer

The idea of comparative advantage suggests that by specializing in the production of goods for which they have a comparative advantage and then trading, individuals or countries can benefit from trade, allowing them to consume beyond their own production possibilities frontier.

The Idea of Comparative Advantage Implies That People or Countries