Trade based on comparative advantage leads to a result that is a
A) positive-sum game.
B) negative-sum game.
C) zero-sum game.
D) result not predictable by game theory.

Question

Quizplus · Accepted Answer

Trade based on comparative advantage is a positive-sum game because it allows all parties involved to benefit by specializing in the production of goods for which they have a lower opportunity cost, leading to increased overall efficiency and gains from trade for all countries involved.

Trade Based on Comparative Advantage Leads to a Result That