The concept of free trade is based on the principle that countries should specialize in theproduction of goods for which the
A) absolute advantage is highest
B) absolute advantage is lowest
C) opportunity cost is highest
D) opportunity cost is lowest
E) consumers have the highest demand
Correct Answer:
Verified
Q87: If two countries specialize,
A) the other countries
Q88: International specialization allows a country to use
Q89: Suppose rice can be produced in China
Q90: If Israel has a lower opportunity cost
Q91: If the United States can produce both
Q93: If Mexico has a comparative advantage in
Q94: Goods produced by people in one country
Q95: U.S. imports are goods that are
A) produced
Q96: Historical note: Changes in demand for and
Q97: The terms of trade equation is written
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