Two nations want to engage in trade but discover that one of them is more efficient in producing all goods.In this case,
A) each nation should export the good in which it has a comparative advantage.
B) no trade is possible.
C) the more efficient country should produce all goods and export them.
D) the less efficient country should engage in importation of goods only.
E) the more efficient country should import all goods.
Correct Answer:
Verified
Q2: One region is said to have an
Q3: In 2017 the value of goods exported
Q4: Trade,whether between individuals or nations,generally promotes
A)self-sufficiency.
B)specialization.
C)lower living
Q5: The principle of comparative advantage was first
Q6: Consider the following information about the production
Q7: Consider the gains from trade.What is the
Q8: Consider the gains from trade.What is the
Q9: Consider two countries that can produce rice
Q10: Since 1950,the world's real GDP has increased
Q11: Consider a country that is initially autarkic
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