Theory of Comparative Advantage recognizes that:
I. very productive people can do everything
II.people can make more by specializing than by doingeverything
III. the division of knowledge helps increase productivity.

Question

Quizplus · Accepted Answer

The Theory of Comparative Advantage suggests that individuals or nations can gain by specializing in the production of goods they produce most efficiently and trading for those they produce less efficiently, thus II and III are correct. It does not imply that very productive people can do everything, making I incorrect.

Theory of Comparative Advantage Recognizes That