Answer to Question #82559 in Macroeconomics for rena

Question

The concept of comparative advantage makes the assumption that everyone will be better off


a) producing enough of a specific final good to export.


b) producing the products they produce relatively best.


c) producing enough of a good to consume domestically with enough to export.


d) producing only products they can produce with greater output than any other country.

Answer 1

The concept of comparative advantage makes the assumption that everyone will be better off producing the products they produce relatively best.

So, the correct answer is b).