World output will be maximized if each country _____

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, each country should specialize in producing and exporting goods and services in which they have a lower opportunity cost and import goods and services in which they have a higher opportunity cost. This way, they can maximize their productivity and efficiency, leading to an overall increase in world output. Therefore, specializing in producing goods in which a country has a comparative advantage would lead to the maximization of world output.

World Output Will Be Maximized If Each Country _____