In a situation of free trade,
A)countries with comparative advantage will export more than countries with comparative disadvantage import.
B)the total quantity of an item exported will be greater than the total quantity imported.
C)importing countries will always produce some good, so that total quantity imported is less than total quantity exported.
D)the total quantity of an item exported will equal the total quantity imported.

Question

Quizplus · Accepted Answer

In a situation of free trade, the total quantity of an item exported will equal the total quantity imported. This is because countries specialize in producing goods in which they have a comparative advantage, and import goods in which they have a comparative disadvantage. Therefore, the total quantity of goods exported will match the total quantity of goods imported, resulting in a balance of trade.

In a Situation of Free Trade