According to the theory of comparative advantage,
A) a country can gain from trade only if it can produce all goods at a lower cost than its trade partner.
B) a country can gain from trade only if it can produce a good at a lower cost than another country.
C) a country can gain from trade only if it can produce a good more efficiently than another country.
D) any country can gain from trade.
E) only high-income countries will gain from trade
Correct Answer:
Verified
Q7: In the last 50 years, international trade
Q8: Suppose Rose has a comparative advantage over
Q9: The share of 2015 world GDP accounted
Q10: Which of the following is the best
Q11: Over the past 50 years, international trade,
Q13: A situation in which a person or
Q14: International trade as a share of world
Q15: A person with a lower opportunity cost
Q16: Rose has an absolute advantage over Sam
Q17: Which of the following is not a
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