The principle of comparative advantage
A) does not hold true in cases of constant opportunity costs.
B) does not hold true in cases of increasing opportunity costs.
C) holds true in cases of constant opportunity costs but not in cases of increasing opportunity costs.
D) holds true in cases of increasing opportunity costs, as it does with constant opportunity costs.
E) may or may not hold true in cases of increasing opportunity costs.
Correct Answer:
Verified
Q51: A country can have an absolute advantage
Q52: The gains from trade are larger for
Q53: If a country's opportunity costs increase when
Q54: Consumption can only occur along the pre-trade
Q55: The principle of comparative advantage implies that
Q57: A country cannot have a comparative advantage
Q58: Country A has a comparative advantage over
Q59: If there are increasing opportunity costs of
Q60: Production can only occur along the pre-trade
Q61: Which of the following is least likely
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