Table 17.1

-Refer to Table 17.1, which shows the per-day production data of rice and T-shirts for two countries, Cambria and Bodoni. Based on the table, it can be said that trade between Bodoni and Cambria will benefit Cambria but not Bodoni.

Question

Table 17.1
 
-Refer to Table 17.1, which shows the per-day production data of rice and T-shirts for two countries, Cambria and Bodoni. Based on the table, it can be said that trade between Bodoni and Cambria will benefit Cambria but not Bodoni.

Quizplus · Accepted Answer

Without seeing the specific data in Table 17.1, the principle of comparative advantage suggests that if each country specializes in the production of the good for which it has a comparative advantage and then trades, both countries can benefit. Trade allows each country to consume more than it could in isolation, benefiting both Cambria and Bodoni.

Table 17.1 -Refer to Table 17.1, Which Shows the Per-Day Production Data