Multiple Choice
If country A can produce both goods X and Y more efficiently, that is, with smaller absolute amounts of resources, than can country B,
A) mutually advantageous specialization and trade between A and B may still be possible.
B) we can conclude that A is an industrially advanced economy and B is a developing economy.
C) it will necessarily be advantageous for B to import both X and Y from A.
D) then there is no possible basis for mutually advantageous specialization and trade between A and B.
Correct Answer:

Verified
Correct Answer:
Verified
Q190: <span class="ql-formula" data-value="{ \text { Domestic Market
Q191: If Nations Quirk and Turk only
Q192: If demand for a product is increasing,
Q193: The U.S. has a trade surplus in
Q194: The World Trade Organization<br>A) is also known
Q196: With constant costs in production, specialization tends
Q197: Suppose the United States eliminates high tariffs
Q198: Tariffs and import quotas would benefit the
Q199: Tariffs<br>A) may be imposed either to raise
Q200: The accompanying table gives domestic supply