Specialization and trade by countries based on absolute advantage results in:
A) a faster depletion of the world's resources.
B) products produced at higher cost.
C) the world using its resources more efficiently causing an increase in world output.
D) the world using its resources more efficiently causing a decrease in world output.
E) a reduction in world output.

Question

Quizplus · Accepted Answer

Specialization and trade based on absolute advantage allow countries to produce goods in which they are most efficient, leading to more efficient global resource use and an increase in world output.

Specialization and Trade by Countries Based on Absolute Advantage Results