Under the Banner of Comparative Advantage, the Free Trade of Specialized

Multiple Choice

Under the banner of comparative advantage, the free trade of specialized goods will result in:

A) a reduction in overall economic efficiency.
B) a reduction in the real wage level in one of the two countries.
C) an increase in the real wage levels in both of the countries.
D) an increase in the real wage level in only one of the two countries.
E) an increase in the absolute efficiency of only one of the two nations.