According to the Theory of Comparative Advantage, Specialization and Free

question 119

Multiple Choice

According to the theory of comparative advantage, specialization and free trade will benefit

• A) only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods.
• B) all trading parties, even when some are absolutely more efficient producers than others.
• C) only that trading party that has an absolute advantage in the production of all goods.
• D) only that trading party that has a comparative advantage in the production of all goods.

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