According to Comparative Advantage, Trade Between Two Countries

question 176

Multiple Choice

According to comparative advantage, trade between two countries

• A) maximizes the amount of inputs that are used in the production of all products.
• B) guarantees that consumption levels will be equal in the two countries.
• C) will benefit all the industries in each of the countries.
• D) allows each of the trading countries to allocate its resources most efficiently.

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