The Theory of Comparative Advantage

Multiple Choice

The theory of comparative advantage:

A) Claims that economic well-being is enhanced if each country's citizens produce only a single product
B) Claims that economic well-being is enhanced when all countries compare commodity prices after adjusting for exchange rate differences in order to standardize the prices charged all countries
C) Claims that economic well-being is enhanced if each country's citizens produce that which they have a comparative advantage in producing relative to the citizens of other countries, and then trade production
D) Claims that no country has an absolute advantage over another country in the production of any good or service