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When Individuals or Groups Specialize in Producing Those Goods for Which

Question 81

Multiple Choice

When individuals or groups specialize in producing those goods for which they have a comparative advantage and exchange those goods with one another,


A) those with an absolute advantage will gain the most,while those without an absolute advantage will lose.
B) those with a comparative advantage will gain the most,while those without a comparative advantage will lose.
C) total production will be greater than it would be without specialization,but would be the greatest if they produced those goods in which they only have an absolute advantage.
D) total production will be less than it would be without specialization.
E) total production will be the greatest that they can achieve given the available resources.

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