If the production possibilities curves of two countries have the same slope,
A)neither has a comparative advantage, and there are no gains from trade.
B)although there is no comparative advantage, there are potential gains if there are differences in absolute advantage.
C)neither has an absolute advantage, and there cannot be gains from trade.
D)both have an absolute advantage and can gain from trade.

Question

Quizplus · Accepted Answer

If the production possibilities curves of two countries have the same slope, it means they have the same opportunity cost for producing goods, indicating no comparative advantage, and thus no gains from trade.

If the Production Possibilities Curves of Two Countries Have the Same