New Zealand is more productive than Madagascar at producing all goods and services. In this situation:
A) New Zealand might benefit by trading with Madagascar.
B) Madagascar would be harmed if it traded with New Zealand.
C) both countries would benefit from trading with each other.
D) New Zealand would see its standard of living decline if it traded with Madagascar.

Question

Quizplus · Accepted Answer

The Answer of New Zealand is more productive than Madagascar at producing all goods and services. In this situation:
A) New Zealand might benefit by trading with Madagascar.
B) Madagascar would be harmed if it traded with New Zealand.
C) both countries would benefit from trading with each other.
D) New Zealand would see its standard of living decline if it traded with Madagascar.

New Zealand Is More Productive Than Madagascar at Producing All