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Question
Macroeconomics
Posted 4 months ago
Which of the following statements about specialization and trade is true?
Choose 1 answer:
(A) A country should specialize in and export the good for which it has absolute advantage.
(B) A country should specialize in and import the good for which it has comparative advantage.
(C) A country should specialize in and import the good for which it has absolute advantage.
(D) A country should specialize in and export the good for which it has a comparative advantage.
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Answer from Sia
Posted 4 months ago
D
Key Concept
Comparative Advantage
Explanation
A country should specialize in the production and export of goods for which it has a comparative advantage, meaning it can produce at a lower opportunity cost than other countries, even if it does not have an absolute advantage. This allows for more efficient global resource allocation and increased total output, benefiting all trading partners.
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