Which of the following statements is true ?

Question

Quizplus · Accepted Answer

Option A correctly states the concept of comparative advantage, which suggests that specialization and trade can benefit both countries involved by allowing them to consume more than they could produce for themselves. Option B is incorrect, as the theory of free trade suggests that all countries involved can gain from trade. Option C is also incorrect, as the theory of comparative advantage argues that a country should specialize in producing those goods for which it has a comparative advantage, not an absolute advantage.

Which of the Following Statements Is True