In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A
A) should not trade with country B.
B) could have the comparative advantage in producing the other good, Y, as well.
C) must have the comparative disadvantage in producing the other good, Y.
D) can produce good X with fewer resources than country B.
Correct Answer:
Verified
Q186: The principal concept behind comparative advantage is
Q187: Q188: Nation Alpha has a comparative advantage in Q189: Q190: The benefits to trading nations based on Q192: Q193: In Germany, one worker can produce either Q194: Employing all its available resources, Nation Alpha Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents