According to the principle of comparative advantage, if a rich country trades with a poor country, then
A) the rich country will benefit and the poor country will lose.
B) the rich country will lose and the poor country will benefit.
C) both countries will benefit.
D) neither of the countries will benefit.
C
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Indirect taxes are levied on specific economic activities
a. True b. False Indicate whether the statement is true or false
P x Q is:
a. A stock value. b. A flow value. c. Totally unrelated to stocks and flows. d. Equal to real GDP
The function of financial intermediaries is to transfer purchasing power from
A. Consumers to savers. B. Dissavers to savers. C. Dissavers to consumers. D. Savers to dissavers.
The law of diminishing marginal productivity implies that increasing only one input will:
A. lead to smaller and smaller increases in output. B. lead to larger and larger increases in output. C. not increase output. D. lead to identical increases in output.