Exam 3: Comparative Advantage and the Gains From Trade

Suppose Paraguay can produce 12 wheat or 3 corn.Suppose Bolivia can produce 4 wheat or 2 corn.Suppose opportunity costs are constant.Given these production possibilities,

Suppose that Sandy can produce 10 economic reports or make 2 sales calls.Suppose Tim can produce 2 economic reports or make 1 sales call.Which of the following is CORRECT?

Given the Republic of Korea's experience,what can we conclude about comparative advantage?

Based on the theory of comparative advantage,nations maximize their well-being when they

A country is likely to be better off in the long run if it pursues self-sufficiency.

In our simple trade model,having a comparative advantage in a product implies that a country will specialize completely in the product