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If Country a Can Produce Both Products X and Y

Question 51

Multiple Choice

If country A can produce both products X and Y more efficiently,that is with smaller 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 "advanced" economy and B is "less developed"
C) it will necessarily be advantageous for B to import both X and Y from A
D) mutually advantageous specialization and trade between A and B will not be possible
E) it will necessarily be advantageous for A to import both X and Y from B

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