Let's play Jeopardy. The answer is: Because more goods are produced at lower prices and no country loses. The question is:

Question

Quizplus · Accepted Answer

DCountries engage in trade because it allows for the production of more goods at lower prices, benefiting all involved parties, which aligns with the concept of comparative advantage. Comparative advantage suggests that countries should produce and export goods they can produce more efficiently and import goods that other countries can produce more efficiently. This leads to increased efficiency and lower prices globally, without any country losing out. Absolute advantage, on the other hand, refers to a country's ability to produce a good more efficiently than another country, but it does not necessarily lead to mutual benefits or lower prices in the way that comparative advantage does.

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