When countries specialize according to their comparative advantage, A. it is possible to increase world output of all goods.
B. it is possible to increase world output of some goods only by reducing the output of others.
C. one country is likely to gain from trade while others lose.
D. all countries will lose from trade.

A. it is possible to increase world output of all goods.

Explanation:

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."

Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.

This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).

In conclusion, it is possible to increase world output of all goods when countries specialize according to their comparative advantage.

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