If Argentina has an absolute advantage in the production of beef and Guatemala has an absolute advantage in the production of bananas, then
A. it is reasonable to expect that trade will benefit both countries, but specialization will not.
B. neither country has anything to gain from specialization and trade.
C. it is reasonable to expect that specialization and trade will benefit both countries.
D. it is reasonable to expect that specialization will benefit both countries, but trade will not.
Answer: C
You might also like to view...
Which of the following groups does not fit in with the others?
A. Illegal immigrants B. Undocumented workers C. Green-card holders D. Overstaying aliens
How does the production possibilities frontier show that every choice involves a tradeoff?
What will be an ideal response?
When pollution emissions can be measured, taxation will tend to be more effective than any other method of controlling pollution.
Answer the following statement true (T) or false (F)
The consumer's income is $800.According to the above figure, why doesn't the consumer choose the combination at point B?
A. The marginal utility per dollar spent on Y exceeds the marginal utility per dollar spent on X. B. The marginal utility of Y exceeds the marginal utility of X. C. The consumer is willing to give up more X for additional units of Y than the rate in the market. D. both a and c E. both b and c