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Question 8

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Use the following to answer questions:
Figure: Comparative Advantage Use the following to answer questions: Figure: Comparative Advantage   -When countries produce those goods for which they have a comparative advantage: A)  total production and consumption will increase in all countries. B)  trade will increase, but production will decrease. C)  at least one country will be worse off; maximizing production comes from producing those goods for which they have the absolute advantage. D)  they are maximizing their opportunity costs.
-When countries produce those goods for which they have a comparative advantage:


A) total production and consumption will increase in all countries.
B) trade will increase, but production will decrease.
C) at least one country will be worse off; maximizing production comes from producing those goods for which they have the absolute advantage.
D) they are maximizing their opportunity costs.

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