World output will be maximized when each country pursues its comparative advantage.
Total world output is maximized since each country is able to produce at a lower opportunity cost,boosting overall production and incomes.

Question

Quizplus · Accepted Answer

This statement is a fundamental principle of international trade, known as the theory of comparative advantage, and is widely accepted by economists. When each country specializes in producing goods that they can produce most efficiently, total world output increases, and countries can trade with each other to obtain goods they cannot produce efficiently themselves. This results in increased efficiency, greater productivity, and higher incomes for all countries involved.

World Output Will Be Maximized When Each Country Pursues Its