Which of the Following Statements Is True

question 114

Multiple Choice

Which of the following statements is true?

• A)Comparative advantage is the ability of a country to produce goods and services at lower opportunity costs than another country.
• B)Free trade theory suggests that when trade takes place any gains made by one nation come at the expense of another.
• C)According to the theory of comparative advantage, a nation should specialise in the production of those goods for which it has an absolute advantage.
• D)Countries should only trade in goods and services they have an absolute advantage producing.