The following question are based on the following diagrams:

-Trade between these two countries would
A) probably result in complete specialization.
B) probably result in partial specialization because the costs of producing steel and chemicals are rising.
C) be unlikely because country B is less productive than country A.
D) take place only if there are qualitative differences between each country's goods.
E) tend to enrich country A at the expense of country B.

Question

The following question are based on the following diagrams:
 
-Trade between these two countries would
A) probably result in complete specialization. 
B) probably result in partial specialization because the costs of producing steel and chemicals are rising. 
C) be unlikely because country B is less productive than country A. 
D) take place only if there are qualitative differences between each country's goods. 
E) tend to enrich country A at the expense of country B.

Quizplus · Accepted Answer

Country A has a comparative advantage in producing steel, while country B has a comparative advantage in producing chemicals. Therefore, trade between these two countries would probably result in complete specialization.

The Following Question Are Based on the Following Diagrams