Question

The theory of comparative advantage Multiple Choice claims that economic well-being is enhanced if each country's citizens produce only a single product. 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. 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. claims that no country has an absolute advantage over another country in the production of any good or service.

Answer 1

Answer:

The correct answer is letter "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.

Explanation:

Comparative advantage is an advantage that an individual, organization o country has that allows them to produce at lower opportunities costs compared to competitors. This scenario does not mean the individual or organization has an absolute advantage over their business rivals.

If individuals of a country would concentrate ton producing that at which they have a comparative advantage compared to other countries so they can exchange the output with other nations., they would lead their country to success.