The best answer of the choices provided here is B.
According to economic theory, countries should produce and export those goods for which they have a comparative advantage. One country (Country A) has a comparative advantage over another country (Country B) in a given good when Country A produces that...
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The best answer of the choices provided here is B.
According to economic theory, countries should produce and export those goods for which they have a comparative advantage. One country (Country A) has a comparative advantage over another country (Country B) in a given good when Country A produces that good at a lower opportunity cost than Country B does. If every country produces and exports the things that it can make at a low opportunity cost, then total production worldwide rises and, in theory, all countries are better off. Therefore, B is the correct answer.