The basis for specialization and trade,both within a nation and among nations,is ________ advantage.

Question

Quizplus · Accepted Answer

The concept of comparative advantage states that countries should specialize in producing goods and services in which they have a lower opportunity cost and trade with other countries in order to maximize efficiency and increase overall output. This theory is the basis for specialization and trade, which applies to both individual nations and international trade. Therefore, the correct answer is E, comparative advantage.

The Basis for Specialization and Trade,both Within a Nation and Among