Both countries can benefit from trade when:
A. there are no trade barriers that are erected by either country.
B. at least one country produces the good for which it has an absolute advantage.
C. each specializes in producing the good for which it has a comparative advantage.
D. each specializes in producing the good for which it has an absolute advantage.
Answer: C
You might also like to view...
When government spending exceeds tax revenues during a specific time period, this is known as a
A) government budget deficit. B) government budget surplus. C) balanced budget. D) public debt.
According to neo-Keynesians, the long-run Phillips curve is essentially horizontal
Indicate whether the statement is true or false
A policy that increases saving
a. will worsen economic growth, but improve health outcomes. b. will worsen economic growth and health outcomes. c. will improve economic growth, but worsen health outcomes. d. will improve economic growth and health outcomes.
The following is the set of conditions is necessary for ________ for a perfectly competitive firm: P = SRMC = SRAC = LRAC.
A. long-run production with economic losses B. long-run equilibrium C. short-run shut down D. long-run profit