If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain
What will be an ideal response?
The gains from trade do not rely on overall productivity (absolute advantage) but on differences in relative prices (comparative advantage). In producing a good or service, as long as a trading partner gives up fewer units of an alternate product, we can gain from trade with them.
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There are about 5 million business firms in the Unites States.
Answer the following statement true (T) or false (F)
Price cannot fall so low that some sellers choose to supply a quantity of zero
a. True b. False Indicate whether the statement is true or false
If a firm pays for investment spending out of retained earnings:
A. the firm forgoes interest it could have received. B. current profits are adjusted downward. C. past profits are adjusted downward. D. the interest rate is irrelevant.
Which of the following helps finance the medical expenses of individuals receiving TANF or SSI?
A. Medicare. B. Supplemental Security Income (SSI). C. Medicaid. D. Social Security.