_____________ explains how mutually beneficial trade can take place even when one nation is less efficient than another nation in the production of all commodities.
A)Mercantilism
B)The law of comparative advantage
C)The labor theory of value
D)The law of absolute advantage

Question

Quizplus · Accepted Answer

The law of comparative advantage explains that even if one nation is less efficient than another in the production of all goods, they can still benefit from trade by specializing in producing the goods for which they have a lower opportunity cost. This allows for both nations to trade with each other and benefit from the exchange.

_____________ Explains How Mutually Beneficial Trade Can Take Place Even