Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive?
A) relative advantage
B) comparative advantage
C) absolute advantage
D) specialization of countries

Question

Quizplus · Accepted Answer

The theory that suggests a country should produce and export goods and services for which it has a comparative advantage (i.e., it is relatively more productive) and import goods and services for which other countries have a comparative advantage (i.e., they are relatively more productive) is called comparative advantage.

Which Theory Suggests That a Country Should Produce and Export