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Identify the Truthfulness of the Following Statements

Question 25

Multiple Choice

Identify the truthfulness of the following statements.
I. If country A has a comparative advantage over country B in the production of good X, then the opportunity cost of producing good X in country A is lower than in country B.
II. If country A has a comparative advantage over country B in the production of good X, then country A cannot gain from trade with country B.


A) Both I and II are true.
B) Both I and II are false.
C) I is true; II is false.
D) I is false; II is true.

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