Which of the Following Statements Is True

question 194

Multiple Choice

Which of the following statements is true ?

• A) Specialization and trade along the lines of comparative advantage allows nations to consume more than if they were to produce just for themselves.
• B) Free trade theory suggests that when trade takes place any gains made by one nation comes at the expense of another.
• C) According to the theory of comparative advantage, a nation should specialize in the production of those goods for which it has an absolute advantage.
• D) All of the above.