Which of the following is a true statement?
A) Comparative advantage explains trade within nations, but not among nations.
B) Comparative advantage explains trade among nations, but not within nations.
C) Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
D) Comparative advantage explains trade within nations and among nations.

Question

Quizplus · Accepted Answer

Comparative advantage explains trade both within nations and among nations. It helps countries to specialize in producing the goods and services they are most efficient at producing, and trade with other countries to obtain what they need.

Which of the Following Is a True Statement