When each person specializes in producing the good in which he or she has a comparative advantage,total production in the economy
A)falls.
B)stays the same.
C)rises.
D)may fall,rise,or stay the same.

Question

Quizplus · Accepted Answer

When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy rises. This is because each person can produce more efficiently and at a lower opportunity cost when they specialize in a particular area. As a result, the total output of the economy increases as a result of specialization and trade.

When Each Person Specializes in Producing the Good in Which