Question

When nations specialize according to their comparative advantage
A. Consumption rises in one country but must fall in all others.
B. Total world production rises but total consumption in the world declines.
C. Total production and consumption in the world increase.
D. none of the above

Answer 1

Answer:

The correct answer is C. Total production and consumption in the world increase.

Explanation:

Comparative advantage has to do with the goods or services that a nation tends to decrease in the price or be more economical than the other nations. This comparative advantage helps the companies to develop goods and services with the best quality but more accessible than the other countries.