Australia is one of the richest nations in the world,
A) so it might not have a comparative advantage in producing any goods.
B) so it must have a comparative advantage in the production of all goods.
C) so it does not need to trade with poor nations in order to achieve any gains from trade.
D) so it must have an absolute advantage in the production of all goods.
E) but it can still benefit from specialisation and trade.
Correct Answer:
Verified
Q208: Scott and Cindy both produce only pizza
Q209: To achieve gains from trade,a country
A)specialises in
Q210: In terms of a nation's production possibilities
Q211: With no international trade,a country _ consume
Q212: In one hour John can produce 20
Q213: Comparative advantage is directly related to which
Q214: By specialising and trading,a country is able
Q215: Consider the United States' production of soy
Q216: "Comparative advantage" is defined as a situation
Q218: Specialisation and trade make a country better
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