According to the principle of comparative advantage, if a rich country trades with a poor country, then
A)the rich country will lose and the poor country will benefit.
B)the rich country will benefit and the poor country will lose.
C)both countries will benefit.
D)neither of the countries will benefit.

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, both countries can benefit from trade if they specialize in producing goods for which they have a lower opportunity cost, regardless of their overall wealth.

According to the Principle of Comparative Advantage, If a Rich