Examples of comparative advantage show how trade between two countries can make each better off.Compared to their pre-trade positions,trade makes both countries better off because in each country
A)total employment is greater.
B)total consumption of goods is greater.
C)wages are higher.
D)total welfare is greater.

Question

Quizplus · Accepted Answer

Trade allows countries to specialize in the production of goods for which they have a comparative advantage, leading to an increase in total consumption of goods due to more efficient resource allocation.

Examples of Comparative Advantage Show How Trade Between Two Countries