The Right Decision About What to Produce and Who to Trade

question 28

Multiple Choice

The right decision about what to produce and who to trade with happens:

• A) almost entirely by market decisions automatically.
• B) when governments publish comparative advantage numbers.
• C) only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option.
• D) governments from different countries get together to decide on trade.