Politics

Question

1 23. Which of the following must exist to allow for mutual beneft from speciallation

and trade between two countries?

1. domparative advantage in the production of a good or service

B. absolute advantage in the production of a good or service

C. increasing marginal returns in production

D. absolute and comparative advantage in the production of a good or service

E. absolute advantage and increasing marginal returns in production

an All

Answer

A. Comparative advantage in the production of a good or service.

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Comparative advantage is the ability of a country to produce a good or service at a lower opportunity cost than another country. This allows for mutual benefit...