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Which Kind of State Is LEAST Likely to Benefit from Trade

Question 8

Multiple Choice

Which kind of state is LEAST likely to benefit from trade?


A) A state that has a comparative advantage at producing a few goods.
B) A state that has a comparative advantage at producing one good.
C) A state that has powerful business interests that produce goods that are more expensive than the global price.
D) A state that has powerful business interests that produce goods that are cheaper than the global price.
E) A state that can produce everything it wants to consume and does it more cheaply than the other alternatives.

Correct Answer:

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