Which of the following statements is true A Specialization a

Which of the following statements is true? A. Specialization affects international trade but not interstate trade. B. Comparative advantage applies to nations but not to people. C. Specialization affects interstate trade but not international trade. D. Everyone can benefit when people specialize where they have a comparative advantage and then trade with each other.

Solution

D is true.

Everyone can benefit with trade and specialising in those commodities in which they have comparative advantage that is in which they have lower opportunity costs .

Other options are false because specialisation affects both international trade and interstate trade.

Comparative advantage applied to both people and nations.