Which of the following statements is true?

Question

Quizplus · Accepted Answer

Comparative advantage focuses on the ability to produce goods and services at a lower opportunity cost, not necessarily based on absolute advantage. Free trade theory suggests that trade benefits all nations involved, rather than just benefiting one at the expense of the other. Finally, countries can still benefit from trade even if they do not have an absolute advantage in producing a good or service, as long as they have a comparative advantage in producing it at a lower opportunity cost than the other country.

Which of the Following Statements Is True