The concept of absolute advantage provides that the resources of trading partners are utilized most efficiently,and that the output of both commodities will:
A)fall
B)rise
C)stay the same
D)increase initially,then decrease

Question

Quizplus · Accepted Answer

According to the concept of absolute advantage, each trading partner specializes in producing the good in which they have an absolute advantage, resulting in more efficient production and increased output of both commodities. Therefore, the answer is that the output of both commodities will rise.

The Concept of Absolute Advantage Provides That the Resources of Trading