Which of the following statements is not correct? a. Trade has potential to benefit all nations b. Trade allows nations to consume outside of their production possibilities curves. c. Trade allows for specialization d. Absolute advantage determines specialization

The correct answer is D

Explanation:

Trade is the term which is defined as the activity of exchanging, buying and selling of the goods and services among the countries, people and companies. It has the potential to provide the advantage to all nations, allows specialization and allow the nations to consume outside.

Absolute advantage or benefit is the benefit which is provided when the producer who could produce a service or a good in the huge amount of quantity under the same cost or at the same amount of quantity at lower cost. So, it could not able to determine or state the specialization.