Which of the following statements is true?
A) When two nations specialize and trade, there is a loss of efficiency and both the nations are made worse off.
B) Trade between two nations is most beneficial when neither has a comparative advantage in the production of any goods and services.
C) Trade between nations allows each nation to specialize in the production of goods in which it has comparative advantage.
D) Trade between two nations is possible only when the opportunity costs of producing goods and services in both nations are identical.
C
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List the various reasons that contributed to the financial crisis that occurred in 2008
Refer to the data. In equilibrium, the level of consumption spending will be:
(Advanced analysis) Answer the question on the basis of the following consumption and investment data for a private closed economy. Figures are in billions of dollars. C = 60 + .6Y I = I 0 = 30 A. 170. B. 270. C. 160. D. 195.
The supply of real GDP is a function of
A) the total expenditures of consumers, investors and government. B) the sum of wages, salaries, corporate profits, rents and interest. C) only the state of technology. D) the quantities of labor, capital and the state of technology.
Monetarists argue that the interest elasticity of the demand for money is
a. low, while Keynesians say it is high. b. important in terms of affecting economic activity. c. highly variable. d. an important factor in determining if velocity is stable or unstable.