Two Countries Will Choose to Specialize and Trade Only If

Multiple Choice

Two countries will choose to specialize and trade only if:

A) the terms of trade fall between the two nations' opportunity costs for producing the goods on their own.
B) the opportunity costs are the same for the two nations.
C) the opportunity costs for producing the goods on their own are astronomically high.
D) one country has an absolute advantage at producing both goods, but a comparative advantage at producing only one good.