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The Table Below Shows Units of Wheat and Cloth Produced

Question 2

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The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1
The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1    -A country can benefit by indulging in international trade when: A) it produces a good in which it has an absolute disadvantage. B) it produces a good in which its trading partner has an absolute advantage. C) it produces a good in which it has a comparative advantage. D) it produces all the goods which are supported by its resources. E) it produces nothing and merely depends on foreign imports.
-A country can benefit by indulging in international trade when:


A) it produces a good in which it has an absolute disadvantage.
B) it produces a good in which its trading partner has an absolute advantage.
C) it produces a good in which it has a comparative advantage.
D) it produces all the goods which are supported by its resources.
E) it produces nothing and merely depends on foreign imports.

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