_______ Is the Basic Message of the Theory of Comparative

question 29

Multiple Choice

_______ is the basic message of the theory of comparative advantage.

• A) Potential world production is greater with unrestricted free trade than it is with restricted trade.
• B) Potential world production is not significantly affected by trade policy.
• C) Potential world production is greater with restricted trade.
• D) It makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it products less efficiently from other countries, unless this means buying goods from other countries that it could produce more efficiently itself.
• E) None of these answers is correct.

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