Which of the following statements is true?

Question

Quizplus · Accepted Answer

Specialisation allows countries to produce more efficiently, resulting in a surplus of production. This surplus can then be traded with other countries, resulting in benefits for both parties. Free trade theory suggests that trade can lead to mutual gains, rather than a zero-sum game where one country's gain always comes at the expense of another. Comparative advantage suggests that countries should produce the goods for which they have a lower opportunity cost, rather than focusing on goods for which they have an absolute advantage. Therefore, option B is incorrect.

Which of the Following Statements Is True