Question

What is a consequence of following the Comparative Advantage Principle?
a.
Countries only make one kind of good or service.
b.
Wages scale to exactly match the skill of the wage-earners.
c.
Countries become more interdependent on one another for goods and materials.
d.
Goods are traded directly, rather than using monetary trade.

Answer 1

c. Countries become more interdependent on one another for goods and materials.

Explanation: Comparative advantage leads countries to specialize in producing goods with the lowest opportunity cost and trade for others, increasing mutual dependence.