When each country specializes in producing the good for which it has a comparative advantage:
A) all countries involved in trading may benefit.
B) the countries involved in trading always enjoy equal gains from trade.
C) the country that is bigger will gain more surplus.
D) the country with the weaker economy will gain more surplus.
Correct Answer:
Verified
Q1: If Colombia has a comparative advantage over
Q2: If Japan has an absolute advantage over
Q3: When trade is possible, each country can
Q5: Absolute advantage is the ability to produce:
A)more
Q6: Voluntary exchanges generate:
A)surplus, leaving both participants better
Q7: When a country has the ability to
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
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