Free trade between countries:
A)should be based on absolute advantage.
B)always involves wealthy countries exploiting less developed nations.
C)will shift the domestic production possibility frontier to the right.
D)will allow for greater levels of consumption than without trade.

Question

Quizplus · Accepted Answer

Free trade allows countries to specialize in the production of goods where they have a comparative advantage, leading to more efficient resource allocation and higher levels of consumption than would be possible without trade.

Free Trade Between Countries