Which of the following would not result from all countries specializing according to the principle of comparative advantage?
a. Each country production possibillties frontier will shift outward.
b. Worldwide production of goods and services will increase.
c. The well-being of citizens in each country will be enhanced.
d. The size of the economic pie will increase.
I disgree. I think a
To determine which of the options would not result from all countries specializing according to the principle of comparative advantage, we need to understand the principle itself and then analyze the given options.
The principle of comparative advantage suggests that countries should specialize in producing goods and services in which they have a lower opportunity cost. In doing so, countries can achieve increased efficiency and productivity, leading to overall economic growth and higher standards of living.
Now, let's analyze the options:
a. Each country's production possibilities frontier will shift outward.
This option is in line with the principle of comparative advantage. When countries specialize in producing goods and services according to their comparative advantage, they can produce more efficiently, leading to an expansion of their production possibilities. Therefore, this option would result from countries specializing according to the principle of comparative advantage.
b. Worldwide production of goods and services will increase.
This option is also aligned with the principle of comparative advantage. When countries specialize and trade based on their comparative advantage, they can produce more efficiently, allocate resources effectively, and increase overall production. Therefore, this option would result from countries specializing according to the principle of comparative advantage.
c. The well-being of citizens in each country will be enhanced.
This option reflects one of the main benefits of the principle of comparative advantage. When countries specialize and trade based on their strengths, they can access a greater variety of goods and services at lower prices. This leads to improved standards of living and enhanced well-being for citizens. Therefore, this option would result from countries specializing according to the principle of comparative advantage.
d. The size of the economic pie will increase.
This option is also in line with the principle of comparative advantage. By allowing countries to focus on producing goods and services more efficiently, the total output increases, leading to a larger economic pie. Therefore, this option would result from countries specializing according to the principle of comparative advantage.
Based on the analysis, we can conclude that there is no answer option that would not result from all countries specializing according to the principle of comparative advantage. Each option is consistent with the concept, and all of them would be expected outcomes of countries following the principle.