Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A) Comparative advantage means that total world output will be greatest when each good is produced by the nation that has the highest domestic opportunity cost of producing it.
• B) Comparative advantage means that a nation can gain from trade only if it has a lower labor productivity than its trading partner.
• C) Specialization will be complete among nations when opportunity costs increase as the nations produce more of a particular product.
• D) Specialization will be less than complete among nations when opportunity costs increase as the nations produce more of a particular product.