The principle of comparative advantage asserts that
A)not all countries can benefit from trade with other countries.
B)the world price of a good will prevail in all countries,regardless of whether those countries allow international trade in that good.
C)countries can become better off by exporting goods,but they cannot become better off by importing goods.
D)countries can become better off by specializing in what they do best.

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that countries can become better off by specializing and producing the goods that they are relatively more efficient at producing. This allows them to trade with other countries and benefit from the goods that other countries produce more efficiently. Therefore, option D is the correct choice. Options A, B, and C are incorrect as they do not align with the principle of comparative advantage.

The Principle of Comparative Advantage Asserts That