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Yingying Huang
on Dec 12, 2024

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Nations will be able to produce a larger joint output and realize mutual gains when each specializes in the production of those items for which it is a low-opportunity cost producer and trades for those things that it could produce only at a high cost. This statement best describes the

A) free rider problem.
B) infant-industry argument.
C) law of comparative advantage.
D) equation of exchange.

Low-Opportunity Cost Producer

A producer who can produce a good or service at a lower opportunity cost than competitors, enabling more efficient production and allocation of resources.

Joint Output

Joint output describes a situation where the production process results in two or more products being produced simultaneously from the same inputs.

Mutual Gains

Benefits that occur in a situation or transaction that are advantageous to all involved parties.

  • Absorb the influence of specialization and trade on international economic dynamics.
  • Familiarize yourself with the benefits of free trade and the negative consequences of trade constraints.
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JM
Jqwalon MooreDec 15, 2024
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