Operation on the basis of comparative advantages implies which of the following?

Question

Quizplus · Accepted Answer

Operation on the basis of comparative advantages implies that countries will specialize in the production of goods and services that they can produce more efficiently in comparison to other countries, even if they can produce everything. This results in increased efficiency and overall gain in global welfare. Therefore, option B is the correct answer. Options A and C are incorrect because they do not consider opportunity costs and efficiency in production. Option D is incorrect because there is a correct answer in this question.

Operation on the Basis of Comparative Advantages Implies Which of the Following