When nations specialize according to their comparative advantage
A) Total production and consumption in the world increase.
B) Consumption rises in one country but must fall in all others.
C) Total world production rises but total consumption in the world declines.
D) none of the above

Question

Quizplus · Accepted Answer

When nations specialize according to their comparative advantage, they produce the goods and services that they can produce most efficiently, while importing goods and services that other countries can produce more efficiently. This results in increased total production and consumption in the world, benefiting all countries involved.

When Nations Specialize According to Their Comparative Advantage