When each country specializes in producing the good for which it has a comparative advantage:
A) both countries may benefit.
B) both countries always enjoy equal gains from trade.
C) the country that is bigger will gain more surplus.
D) the country with the weaker economy will gain more surplus.
Correct Answer:
Verified
Q3: When a country has the ability to
Q4: When a country has the ability to
Q5: Comparative advantage is the ability to produce:
A)
Q6: If England buys hockey sticks from Canada,then:
A)
Q7: When two countries specialize and trade:
A) both
Q9: The right decision about what to produce
Q10: Absolute advantage is the ability to produce:
A)
Q11: If Colombia has a comparative advantage over
Q12: The increase in welfare in both countries
Q13: Gains from trade are the:
A) increase in
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