If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total world output?

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Quizplus · Accepted Answer

By specializing in producing the good in which they have a comparative advantage, each country can increase their efficiency and productivity, resulting in an increase in total world output. This is the result of the principle of comparative advantage, which asserts that when each country specializes in producing the good it is relatively more efficient in producing, both countries can benefit by trading with each other.

If Two Countries Each Are Currently Producing Two Goods, and Each