Which of the following is true?
A)Voluntary trades give both parties more in value than what they give up.
B)Without the ability to trade, people would not tend to specialize as much in those areas where they had a comparative advantage.
C)People can gain by specializing in the production of the good in which they have a comparative advantage.
D)All of the above are true.

Question

Which of the following is true?
A)​Voluntary trades give both parties more in value than what they give up.
B)​Without the ability to trade, people would not tend to specialize as much in those areas where they had a comparative advantage.
C)​People can gain by specializing in the production of the good in which they have a comparative advantage.
D)​All of the above are true.

Quizplus · Accepted Answer

A) This is the principle of mutual gain in trade, where both parties benefit from the exchange. 
B) The ability to trade allows individuals and countries to specialize in producing goods and services where they have a comparative advantage, which leads to increased efficiency and productivity. 
C) Specialization in the production of goods and services where one has a comparative advantage allows individuals and countries to produce more output with fewer resources, ultimately leading to higher economic welfare. 
Therefore, all three statements are true.

Which of the Following Is True