Which of the following would not result from all countries specializing according to the principle of comparative advantage?
A)Each country's production possibilities frontier will shift outward.
B)Worldwide production of goods and services will increase.
C)The well-being of citizens in each country will be enhanced.
D)The size of the economic pie will increase.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that each country should focus on producing goods and services that it can produce relatively more efficiently than others. By doing so, total worldwide production will increase, the size of the economic pie will increase, and the well-being of citizens will be enhanced. However, this specialization may not directly affect the production possibilities frontier, which is a representation of the maximum output that a country can produce given its resources and technology. Thus, choice A is the correct answer.

Which of the Following Would Not Result from All Countries