Which of the following statements is not correct?
A)Trade allows for specialization.
B)Trade has the potential to benefit all nations.
C)Trade allows nations to consume outside of their production possibilities curves.
D)Absolute advantage is the driving force of specialization.

Question

Quizplus · Accepted Answer

Comparative advantage is the driving force of specialization, not absolute advantage. Absolute advantage refers to a country's ability to produce a good more efficiently than another country, while comparative advantage refers to a country's ability to produce a good at a lower opportunity cost than another country.

Which of the Following Statements Is Not Correct