When a country has the ability to produce a good or service at a lower opportunity cost than others, it:
A) has an absolute advantage.
B) has a comparative advantage.
C) is a free-trader.
D) should remain self-sufficient.
Correct Answer:
Verified
Q2: If Japan has an absolute advantage over
Q3: When trade is possible, each country can
Q4: When each country specializes in producing the
Q5: Absolute advantage is the ability to produce:
A)more
Q6: Voluntary exchanges generate:
A)surplus, leaving both participants better
Q8: When a country has the ability to
Q9: If Spain sells soccer balls to the
Q10: Which of the following is not an
Q11: Voluntary exchanges between _ generate surplus.
A)firms
B)countries
C)individuals
D)All of
Q12: When two countries specialize and trade:
A)they both
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