What Happens When Countries Specialize According to Their Comparative Advantage

question 106

Multiple Choice

What happens when countries specialize according to their comparative advantage?

• A) It is possible to increase world output of all goods.
• B) It is possible to increase world output of some goods only by reducing the output of others.
• C) One country is likely to gain from trade while others lose.
• D) All countries will lose from trade.

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