When two countries gain from trade
A) one country must have an absolute advantage over the other in producing all goods.
B) both countries can consume beyond their domestic production possibilities frontiers.
C) one country must have a comparative advantage over the other in producing all goods.
D) both countries must be equal in size.
Correct Answer:
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Q1: Suppose that if the United States produced
Q2: As used by economists, the term "capital"
Q3: Comparative advantage exists when one country can
Q5: Which scenario is part of a planned
Q6: (Table) Given the production possibilities schedule shown
Q7: _ advantage exists when one country can
Q8: A nation that consumes most of what
Q9: (Figure: Biscuit and Cookies PPFs) Greg and
Q10: (Figure: Pork and Corn PPF 2) If
Q11: Jason produces more jeans than Jasmine. Why
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