The idea of comparative advantage tends to imply that:
A)countries as a whole can be made better off through free trade and all segments of society will benefit.
B)the countries who have greater resources will earn the greatest benefit from allowing free trade.
C)when one country can produce more of a good than another country, that country should specialize in the production of that good.
D)countries as a whole can be made better off through free trade, but individuals within that country could be hurt by trade if not compensated by the groups or individuals who are made better off by trade.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that while countries can benefit from free trade overall, some individuals or groups within those countries may lose out unless they are compensated by those who gain from the trade.

The Idea of Comparative Advantage Tends to Imply That