Which of the following is true?
i.Comparative advantage drives international trade.
ii.Compared to a no-trade situation, imports make domestic producers better off.
iii.Tariffs lower the domestic price of imported goods.

Question

Quizplus · Accepted Answer

Comparative advantage is a key driver of international trade as it allows countries to specialize in producing goods where they have a lower opportunity cost. Imports generally make domestic consumers better off, not producers, as they face increased competition. Tariffs typically raise the domestic price of imported goods, not lower it.

Which of the Following Is True