All of the following are true EXCEPT
A)trade between two nations reduces their opportunity costs.
B)trade makes nations dependent on each other.
C)trade between nations will not benefit all citizens.
D)the principle of comparative advantage does not apply to countries with extremely limited resources.
E)specialization according to comparative advantage can make both countries better off.

Question

Quizplus · Accepted Answer

The principle of comparative advantage applies to all countries, regardless of the amount of resources they have. It is the basis for trade and specialization, as it suggests that each country should focus on producing the goods and services that they can produce most efficiently relative to other countries.

All of the Following Are True EXCEPT