When a nation exports a good or service in which it has a comparative advantage,production of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change.
E) might change, but more information about what else the country exports is needed to determine if production 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, its production of that good or service increases. This is because having a comparative advantage in a particular good or service means that the nation can produce it more efficiently than other nations. By exporting it, the nation can take advantage of the higher prices that it can command in international markets, which incentivizes producers to increase production.

When a Nation Exports a Good or Service in Which