Table 3-4

-Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will happen?
A)All individuals in both provinces will gain.
B)No one in either province will gain.
C)Some individuals within both provinces will be made worse off.
D)One province will be better off and the other province will be worse off.

Question

Table 3-4
 
-Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will happen?
A)All individuals in both provinces will gain. 
B)No one in either province will gain. 
C)Some individuals within both provinces will be made worse off. 
D)One province will be better off and the other province will be worse off.

Quizplus · Accepted Answer

When trade occurs based on comparative advantage, overall economic efficiency increases, but some individuals may be worse off due to changes in production and employment patterns.

Table 3-4 -Refer to Table 3-4. If Alberta and Manitoba Trade Based