Multiple Choice
Spain can produce everything more cheaply than France.What should they do?
A) still trade with each other because it is comparative, not absolute, advantage that is important
B) not trade with each other because it is not profitable for either of them
C) France should buy all goods from Spain in order to make the most of their cheaper prices
D) Spain should sell everything to France because other countries might have a comparative advantage
Correct Answer:
Verified
Correct Answer:
Verified
Q34: Table 3-3<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q35: What roles were played by Adam Smith
Q36: The central argument for free trade has
Q37: Trade allows a country to pivot outwards
Q38: A constant trade-off in the production of
Q40: Table 3-3<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q41: Table 3-4<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q42: Graph 3-1<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 3-1
Q43: Table 3-3<br> <span class="ql-formula" data-value="\begin{array}{|l|c|c|c|c|}\hline&\text
Q44: The conclusions of Adam Smith and David