The theory of comparative advantage indicates that international trade should increase the output of the economy by moving resources from _____ to _____ industries.

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that economies should specialize in the production of goods and services where they have a lower opportunity cost, moving resources from industries where they have a comparative disadvantage to those where they have a comparative advantage. This specialization increases overall efficiency and output.

The Theory of Comparative Advantage Indicates That International Trade Should