In order to enjoy the highest standard of living possible,comparative advantage theory states that all nations should strive to become self-sufficient.
The theory of comparative advantage states that a country should export those goods that it produces most efficiently and import those goods that it cannot produce as efficiently.

Question

Quizplus · Accepted Answer

The statement is incorrect. Comparative advantage theory actually advocates for countries to specialize in producing the goods and services they can produce most efficiently and trade with other countries to obtain goods and services that they cannot produce as efficiently. This leads to greater economic efficiency and higher standards of living for all participating countries.

In Order to Enjoy the Highest Standard of Living Possible,comparative