Multiple Choice
Absent any trade, a country's residents either can produce 1,000 laptop computers and 500 computer servers per week, or can produce 750 laptop computers and 750 computer servers per week. After trade takes place, its residents either can consume both 1,000 laptop computers and 600 computer servers, or can consume both 850 laptop computers and 750 computer servers. These outcomes represent:
A) gains from international trade.
B) absolute advantage in international trade.
C) redistributive effects of international trade.
D) points on a production possibilities frontier.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: If there is international trade, then a
Q15: Absolute advantage exists when residents of one
Q16: If the opportunity cost of producing an
Q17: Absolute advantage is required for residents of
Q18: In country A, the opportunity cost of
Q19: In country A, the opportunity cost of
Q20: Consider two nations, country A and country
Q21: The value of each and every alternative
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Q24: The possession of redistribution advantage in the