When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
A . Each nation’s total imports approximately equal its total exports.
B . Each good is produced by the nation that has the lowest opportunity cost for that good.
C . Goods that contribute to a nation’s balance-of-payments deficit are no longer imported.
D . International trade is unrestricted and tariffs are not imposed.

View Answer

Answer: B