View all questions & answers for the IIA-CIA-Part3-3P exam
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
Each nation's total imports approximately equal its total exports.
Each good is produced by the nation that has the lowest opportunity cost for that good.
Goods that contribute to a nation's balance-of-payments deficit are no longer imported.
International trade is unrestricted and tariffs are not imposed.
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