If the residents of a country specialize in a good in which they have a comparative advantage and trade with residents in another nation, the residents in the first country
A) can consume more than they could without trade.
B) will produce less than they could without trade.
C) will have a lower standard of living.
D) will be exploited by the second nation.

Question

Quizplus · Accepted Answer

When a country specializes in producing a good in which it has a comparative advantage and trades with another country, it allows for greater efficiency and productivity, resulting in increased output and consumption possibilities. The country will be able to consume more than it could without trade.

If the Residents of a Country Specialize in a Good