Multiple Choice
If a nation has an absolute advantage in producing a good:
A) it necessarily has a comparative advantage.
B) it will export that good.
C) it necessarily has a comparative disadvantage.
D) it may export or import that good, depending on whether it has a comparative advantage.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Gains from trade occur for an individual
Q8: A redistribution effect of international trade unambiguously
Q9: After residents of two nations specialize in
Q10: The slope of a line tangent to
Q11: The slope of a line tangent to
Q13: The production possibilities frontier is _ because,
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