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Which of the Following Is an Implication of the Law

Question 138

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Which of the following is an implication of the law of comparative advantage?


A) Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities.
B) Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries.
C) Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost.
D) Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.

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