According to the theory of comparative advantage, the most important benefit of trade is:
A) more jobs.
B) a more efficient allocation of resources.
C) trade surpluses.
D) increased exports.
E) increased imports.

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that trade allows countries to specialize in the production of goods and services that they can produce most efficiently, leading to a more efficient allocation of global resources. This efficiency boosts overall economic welfare.

According to the Theory of Comparative Advantage, the Most Important