The economic principle that states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost is
A) the law of absolute advantage.
B) the law of comparative advantage.
C) the law of production possibilities.
D) the exchange maximum principle.

Question

Quizplus · Accepted Answer

The law of comparative advantage states that individuals or nations can gain by specializing in the production of goods that they produce cheaply and exchanging for other desired goods that they could only produce at a higher cost.

The Economic Principle That States That Individuals or Nations Can