Figure 16.5.1
-Use the following statements to answer this question. I. There are potential gains from trade when the economies of two countries differ so that one country has an absolute advantage in producing one good, while the second country has an absolute advantage in producing another good.
II) A country has an absolute advantage in producing a good if its cost is lower than the cost in another country.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.

Question

Figure 16.5.1
-Use the following statements to answer this question. I. There are potential gains from trade when the economies of two countries differ so that one country has an absolute advantage in producing one good, while the second country has an absolute advantage in producing another good.
II) A country has an absolute advantage in producing a good if its cost is lower than the cost in another country.
A) Both I and II are true. 
B) I is true, and II is false. 
C) I is false, and II is true. 
D) Both I and II are false.

Quizplus · Accepted Answer

The Answer of  Figure 16.5.1
-Use the following statements to answer this question. I. There are potential gains from trade when the economies of two countries differ so that one country has an absolute advantage in producing one good, while the second country has an absolute advantage in producing another good.
II) A country has an absolute advantage in producing a good if its cost is lower than the cost in another country.
A) Both I and II are true. 
B) I is true, and II is false. 
C) I is false, and II is true. 
D) Both I and II are false.

Figure 16.5.1 -Use the Following Statements to Answer This Question. I. There