Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that
A) country B has an absolute advantage in the production of product X.
B) country B has a comparative advantage in the production of product X.
C) country A has an absolute advantage in the production of product X.
D) country A has a comparative advantage in the production of product X.
Correct Answer:
Verified
Q3: The goods and services that our country
Q5: Comparative advantage implies that a country will
A)
Q5: International trade arises from
A) absolute advantage.
B) comparative
Q6: When the principle of comparative advantage is
Q7: Suppose sugar is exported from a nation.
Q8: A country specializes in the production of
Q9: In 2016, the world's largest international traders
Q10: The fundamental force that drives international trade
Q11: The United States has a comparative advantage
Q21: Which of the following statements about U.S.
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