The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-Countries tend to export different goods and services because of:

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-Countries tend to export different goods and services because of:

Quizplus · Accepted Answer

Countries tend to export goods and services where they have a comparative advantage, meaning they can produce a good at a lower opportunity cost than another country. This is based on differences in resources, technology, and skills, leading to specialization and trade. Therefore, option A is the correct answer. Options B and C are incorrect as they don't fully explain why countries export different goods and services. Option D is incorrect because if countries had similar resource endowments, they would not have a comparative advantage in anything, making trade unnecessary. Option E is incorrect because exchange rates do not necessarily determine what goods and services a country exports, but they can affect the level of exports and imports.

The Table Given Below Shows the Absolute Tax Amounts Under