Suppose That Country a Is Twice as Good at Producing

Multiple Choice

Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A,

A) the comparative advantage will be canceled out.
B) trade will be an improved outcome for both A and B.
C) the comparative advantage could possible be canceled out depending on how much it costs to produce the widget in country B.
D) none of the above