When productive activity is organized according to comparative advantage,
A) there is a decrease in the amount of goods and services that an economy can gain from its resources.
B) there is an increase in the amount of goods and services that an economy can gain from its resources.
C) there is no change in the amount of goods and services that an economy can gain from its resources.
D) the amount of goods and services that an economy can gain from its resources may increase or decrease.
E) there is a decrease in the quality of the goods and services produced in the economy.

Question

Quizplus · Accepted Answer

Organizing production according to comparative advantage allows each country to specialize in producing the goods and services in which they have a lower opportunity cost. This results in a more efficient use of resources, leading to an increase in the amount of goods and services that an economy can gain from their resources. Therefore, the correct answer is B.

When Productive Activity Is Organized According to Comparative Advantage