The existence of "absolute advantage"
A) implies that there will be no benefits from trade between two nations.
B) refers to a situation where one country can produce one unit of a given product with fewer resources than the other country.
C) fosters the self-sufficiency of nations.
D) refers to a situation where one country can produce one unit of all goods with fewer resources than can another country.
E) is not physically possible.
Correct Answer:
Verified
Q3: There will be no gains from specialization
Q4: Consider the following information about the production
Q4: Trade,whether between individuals or nations,generally promotes
A)self-sufficiency.
B)specialization.
C)lower living
Q6: The concept of "comparative advantage" refers to
Q9: Consider two countries that can produce rice
Q11: Consider a country that is initially autarkic
Q11: There will be no gains from specialization
Q12: Since 1950,the world's real GDP has increased
Q14: The increases in a nation's output and
Q19: The existence of any "gains from trade"
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