The free trade theories of specialization primarily assume that ________.
A)specialization leads to unemployment, but production gains compensate for job losses
B)resources can move internationally from the production of one good to another
C)resources can move domestically from the production of one good to another
D)countries have objectives other than economic efficiency

Question

Quizplus · Accepted Answer

The free trade theories, including the theory of comparative advantage, assume that resources can move domestically from the production of one good to another, allowing countries to specialize in the production of goods for which they have a comparative advantage. This specialization increases overall economic efficiency and production.

The Free Trade Theories of Specialization Primarily Assume That ________