According to the theory of comparative advantage, potential world prod

QUESTION

According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is with restricted trade.

Indicate whether the statement is true or false.

ANSWER

TRUE
The basic message of the theory of comparative advantage is that potential world production is greater with unrestricted free trade than it is with restricted trade as consumers in all nations can consume more if there are no restrictions on trade.