The concepts of comparative advantage,specialization,and trade:
A) can be useful in explaining why countries import and export certain goods.
B) can be useful in explaining why individuals typically work at one job, and buy the other goods and services they need.
C) can be useful in explaining why we allow ourselves to be interdependent on others.
D) All of the statements are true.

Question

Quizplus · Accepted Answer

All of the statements are true. The theory of comparative advantage explains why countries specialize in producing specific goods and services, allowing them to trade with other countries for goods and services they cannot produce as efficiently. Similarly, individuals specialize in certain jobs and purchase other goods and services they need, based on comparative advantage. The concept of specialization and trade leads to interdependence among countries, enabling them to benefit from the exchange of goods and services that would not otherwise be possible.

The Concepts of Comparative Advantage,specialization,and Trade