Comparative advantage is the basis for
A) efficient production.
B) international trade.
C) economies of scale.
D) the capital-labor trade-off.

Question

Quizplus · Accepted Answer

Comparative advantage is a key principle that explains why countries engage in international trade. It suggests that countries should specialize in producing goods for which they have a lower opportunity cost compared to other nations, thereby benefiting from trade.

Comparative Advantage Is the Basis for