If the autarky Px/Py is lower in nation 1 than in nation 2 without trade:
A) nation 1 has a comparative advantage in commodity Y
B) nation 2 has a comparative advantage in commodity X
C) nation 2 has a comparative advantage in commodity Y
D) none of the above
Correct Answer:
Verified
Q4: Mutually beneficial trade cannot occur if production
Q5: Trade allows nations to attain and indifference
Q5: The gains from exchange with respect to
Q6: Which of the following is not true
Q10: A production frontier that is concave from
Q10: Under which circumstance is it not possible
Q12: With free trade under increasing costs:
A)neither nation
Q13: Which of the following statements about community
Q14: If Px/Py exceeds the equilibrium relative Px/Py
Q15: Community indifference curves:
A)are negatively sloped
B)are convex to
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