When opportunity costs differ between countries,
A) comparative advantages may or may not exist.
B) specialization and trade can lead to increases in the production of all commodities.
C) each country should produce only those goods for which it has an absolute advantage.
D) only the larger countries will benefit from trade.
E) only the smaller countries will benefit from trade.
Correct Answer:
Verified
Q39: Consider two countries that can produce rice
Q40: The diagram below shows the domestic demand
Q41: When opportunity costs are identical between two
Q42: Australia exports wine to Canada, and Canada
Q43: One region is said to have an
Q45: The diagram below shows the domestic demand
Q46: The theory that patterns of international trade
Q47: Economies of scale and product differentiation can
Q48: The idea that unit production costs fall
Q101: If Canada's index of export prices is
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