What matters most in determining the efficient distribution of production all over the world?

Question

Quizplus · Accepted Answer

Comparative advantage considers the opportunity cost of producing a good and encourages specialization and trade between nations. This leads to a more efficient distribution of production as each country produces the goods that they can produce at a lower opportunity cost, leading to increased overall production and economic welfare for all countries involved. The other options (A, B, D) are important factors to consider but do not alone determine the efficient distribution of production.

What Matters Most in Determining the Efficient Distribution of Production