According to economists, international trade among countries _____ .

• A. prevents countries from benefiting from economies of scale
• B. reduces the overall welfare of all countries involved
• C. always leads to higher unemployment in all participating countries
• D. allows countries to specialize in the production of goods and services in which they have a comparative advantage

Answer: (D)

Verified step by step guidance

1. Understand the concept of comparative advantage: It means that a country can produce a good or service at a lower opportunity cost than another country.
2. Recognize that international trade allows countries to specialize in producing goods and services where they have a comparative advantage, leading to more efficient resource allocation.
3. Recall that specialization and trade enable countries to benefit from economies of scale, which means producing larger quantities can reduce average costs.
4. Know that through specialization and trade, countries can increase overall welfare by consuming more than they could without trade.
5. Conclude that international trade does not necessarily cause higher unemployment in all countries; instead, it can create new opportunities and jobs in sectors where countries specialize.