When specialization according to comparative advantage also makes economies of scale possible,
A) costs will rise in all trading countries.
B) trade is not beneficial to the country that has the absolute advantage in both goods.
C) the production possibilities boundaries of all trading countries will shift inward.
D) there will be additional gains from trade.
E) it will be beneficial for all trading countries to impose tariffs.
Correct Answer:
Verified
Q27: The diagram below shows the domestic demand
Q28: The figure below shows Arcticland's annual production
Q29: If the index of export prices increases
Q30: The diagram below shows the domestic demand
Q31: When opportunity costs differ between countries,
A)only the
Q32: When opportunity costs are identical between two
Q33: The figure below shows Arcticland's annual production
Q34: The figure below shows Arcticland's annual production
Q36: Consider Canada's terms of trade.Canadians consume millions
Q37: The diagram below shows the (hypothetical)demand and
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