If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production,then
A) Mexico will benefit from trade with the United States but the United States will not.
B) both the United States and Mexico will benefit from trade with the other.
C) the United States will benefit from trade with Mexico but Mexico will not.
D) neither Mexico nor the United States will benefit from trade with the other.
E) it is unknown whether either country can benefit from trade with the other.
Correct Answer:
Verified
Q199: Q200: Q201: Specialisation and trade Q202: Scott and Cindy both produce only pizza Q203: Scott and Cindy both produce only pizza Q205: The gains from trade include i.lower prices Q206: In one hour John can produce 20 Q207: If a nation has an absolute advantage Q208: Scott and Cindy both produce only pizza Q209: To achieve gains from trade,a country![]()
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A)shift the production possibilities frontier
A)specialises in
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