The idea that countries should produce and sell goods that they produce most effectively

and efficiently, and buy goods that other countries produce most effectively and efficiently,
is known as
A. absolute advantage theory. C. efficiency balanced trade.
B. free trade. D. comparative advantage theory

my answer is C

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i posted then sat or sunday but no one helpe me with them.. so i didn't know to wait longer for someone to help me ot post again.. i wasn't sure what to do

Use "Economics" for your school subject. These are not about what is normally consider literacy (the ability to read and write). If you label the subject correctly, the correct people will see your questions.

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The correct answer is D. comparative advantage theory.

To understand why this is the correct answer, let's break down the other options and explain them:

A. Absolute advantage theory: This theory suggests that countries should specialize in producing goods that they can produce with absolute advantage, meaning they can produce them at a lower cost or more efficiently than other countries. While this theory is related to the concept of specialization and trade, it does not fully capture the idea of countries buying goods from others that they cannot produce as effectively.

B. Free trade: Free trade is a concept that advocates for the removal of barriers such as tariffs, quotas, and subsidies on goods and services traded between countries. While free trade promotes the exchange of goods and services between countries, it does not specifically address the idea of countries producing and selling goods that they are most efficient at producing.

C. Efficiency balanced trade: This is not a commonly used term in economics. It is not a recognized theory or concept and does not align with the given question.

D. Comparative advantage theory: This theory suggests that countries should specialize in producing goods that they can produce at a lower opportunity cost compared to other countries. This means that even if a country can produce all goods more efficiently than other countries (absolute advantage), it is still beneficial for them to specialize in the goods they produce most effectively and buy the goods others produce most effectively. This allows for mutual gains from trade and increased overall efficiency.

Therefore, the correct answer is D. comparative advantage theory, as it best explains the concept of countries producing and selling goods they can produce most effectively and efficiently, while also buying goods from other countries that they can produce most effectively and efficiently.