Solved

If Country a Can Produce Both Goods X and Y

Question 195

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.

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