Specialization and trade benefits all participants only if:
A)They specialize in those things they have both a comparative and absolute advantage in.
B)They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage.
C)They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage.
D)Traders have the same opportunity cost of production

Question

Specialization and trade benefits all participants only if:
A)​They specialize in those things they have both a comparative and absolute advantage in.
B)​They specialize in those things they have a comparative advantage in, even if they have an absolute disadvantage.
C)​They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage.
D)​Traders have the same opportunity cost of production

Quizplus · Accepted Answer

Specialization and trade benefit all participants when they specialize in the production of goods for which they have a comparative advantage, even if they do not have an absolute advantage. This allows for more efficient allocation of resources and increases the total output of goods, benefiting all parties involved.

Specialization and Trade Benefits All Participants Only If