Assume that research shows that American agriculture is the most efficient in the world; then:
A) if America is also efficient in the production of all other goods, there would be no gains from trade.
B) with only this information, we cannot say whether it would pay America to be a food exporter or a food importer.
C) it could never pay America to import food.
D) it would always pay America to import food.
E) none of the above is necessarily true all of the time.
Correct Answer:
Verified
Q5: Two areas, Europe and America, can produce
Q6: Assume that the two nations described below
Q7: In terms of comparative advantage, the most
Q8: Use the following to answer questions :
Figure
Q9: If one of two countries has an
Q11: Under the banner of comparative advantage, the
Q12: Use the following to answer questions :
Figure
Q13: Use the following to answer questions :
Figure
Q14: If we are to demonstrate gains from
Q15: The introduction of decreasing costs into the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents