According to the Theory of Comparative Advantage, Specialization and Free

question 119

Multiple Choice

According to the theory of comparative advantage, specialization and free trade will benefit

• A) only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.
• B) all trading parties, even when some are absolutely more efficient producers than others.
• C) only that trading party that has an absolute advantage in the production of all goods.
• D) only that trading party that has a comparative advantage in the production of all goods.

---

Definitions:

Being Paid

The act of receiving money or compensation for work or services rendered.

Firebreak

A gap in vegetation or other combustible material that acts as a barrier to slow or stop the progress of a wildfire or bushfire.

Housing Construction

Refers to the process of building and designing residential buildings, ranging from single-family homes to multi-unit apartments.

Fires

Uncontrolled burning that can cause damage to structures, landscapes, and can pose a safety risk to individuals.