If Spain sells soccer balls to the United States, then Spain:
A) has an absolute advantage over the United States in producing soccer balls.
B) can produce more soccer balls than the United States given the same resources.
C) has the ability to produce soccer balls at a lower opportunity cost than the United States can.
D) does not have any trade barriers with the United States.
Correct Answer:
Verified
Q4: When each country specializes in producing the
Q5: Absolute advantage is the ability to produce:
A)more
Q6: Voluntary exchanges generate:
A)surplus, leaving both participants better
Q7: When a country has the ability to
Q8: When a country has the ability to
Q10: Which of the following is not an
Q11: Voluntary exchanges between _ generate surplus.
A)firms
B)countries
C)individuals
D)All of
Q12: When two countries specialize and trade:
A)they both
Q13: Comparative advantage is the ability to produce:
A)more
Q14: Gains from trade is the:
A)increase in welfare
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