When Nations Specialize in Their Areas of Comparative Advantage and Then

question 183

Multiple Choice

When nations specialize in their areas of comparative advantage and then trade with the rest of the world, the result is that

• A) the average standard of living in the world will go down.
• B) the average standard of living in the world will go up.
• C) the world will move from a point on the production possibilities curve to a point inside the curve.
• D) worldwide economic efficiency will decrease.