Which of the following statements is not correct? a. Trade allows for specialization. b. Trade has the potential to benefit all nations. c. Trade allows nations to consume outside of their production possibilities curves. d. Absolute advantage is the driving force of specialization.

Question

Social Studies

Dario Duarte

4 July, 20:21

Which of the following statements is not correct? a. Trade allows for specialization. b. Trade has the potential to benefit all nations. c. Trade allows nations to consume outside of their production possibilities curves. d. Absolute advantage is the driving force of specialization.

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Answers (1)

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Imani · Answer 1

d. Absolute advantage is the driving force of specialization.

Explanation:

Countries benefit by specializing in the production of certain commodities in which they have comparative advantage. So Driving force behind specialization is comparative advantage of producing something.

So option D is correct.