Resources are used more efficiently if people, regions, and countries specialize in goods for which they have a(n):
A)disincentive to trade with others.
B)higher opportunity cost.
C)absolute advantage in production.
D)comparative advantage in production.

Question

Resources are used more efficiently if people, regions, and countries specialize in goods for which they have a(n):
A)​disincentive to trade with others.
B)​higher opportunity cost.
C)​absolute advantage in production.
D)​comparative advantage in production.

Quizplus · Accepted Answer

Specialization based on comparative advantage allows individuals or countries to produce goods or services at a lower opportunity cost and trade with other individuals or countries who have a comparative advantage in producing other goods or services. This leads to a more efficient use of resources and helps to increase overall economic welfare.

Resources Are Used More Efficiently If People, Regions, and Countries