According to the theory of comparative advantage, trade and specialization ________ productivity by ________ opportunity costs.
A) raise; raising
B) raise; lowering
C) lower; raising
D) lower; lowering

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that trade and specialization increase productivity by reducing opportunity costs, allowing countries to focus on producing goods for which they have a lower opportunity cost.

According to the Theory of Comparative Advantage, Trade and Specialization