Which of the following would NOT occur if each person specializes in the good for which they have a comparative advantage?
A) Each person's production possibilities frontier will shift outward.
B) Total production in the economy will increase.
C) Everyone can be better off with specialization and trade.
D) The size of the economic pie will increase.

Question

Quizplus · Accepted Answer

If each person specializes in the good for which they have a comparative advantage, their production of that good will increase, but their production of other goods will decrease. As a result, their individual production possibilities frontier will not shift outward, but rather will move along the same curve.

Which of the Following Would NOT Occur If Each Person