When nations trade the result would most likely be:
A) increase in total production, which can benefit every nation involved.
B) increase in total production, which would benefit only the wealthier nation.
C) decrease in total production across nations but increases it for some.
D) decrease in total production across all nations but benefits every nation because they are individually more productive.

Question

Quizplus · Accepted Answer

The result of nations trading is an increase in the total production, which can benefit every nation involved. This is because nations can specialize in the production of goods and services that they have a comparative advantage in, and then trade with other nations for products that they lack in comparative advantage. As a result, total production increases as each nation produces more goods and services, leading to economic growth for all nations involved.

When Nations Trade the Result Would Most Likely Be