When a nation exports a good or service in which it has a comparative advantage,employment in that industry
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change.
E) might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.

Question

Quizplus · Accepted Answer

When a nation exports a good or service in which it has a comparative advantage, it is able to produce the product more efficiently and at a lower cost than other countries. This leads to increased demand for the product, which in turn leads to increased production and employment in that industry. Therefore, employment in that industry increases.

When a Nation Exports a Good or Service in Which