Multiple Choice
The principle of comparative advantage states that
A) countries with a comparative advantage in one good should specialize and trade but those with a comparative advantage in all goods should not.
B) the combined output of two producers will be enhanced if each specializes in the product in which it has a comparative advantage.
C) the combined output of two producers will be enhanced if each specializes in the product in which it has an absolute advantage.
D) countries with an absolute advantage in one good should specialize in that good whether or not they have a comparative advantage in that good.
Correct Answer:
Verified
Correct Answer:
Verified
Q112: The "terms of trade" principle refers to
Q113: Pure capitalism is sometimes referred to as<br>A)a
Q114: A production possibilities curve that is bowed
Q115: The Canadian economy is an example of<br>A)a
Q116: Figure 2-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4981/.jpg" alt="Figure 2-1
Q118: Explain the meaning and importance of the
Q119: A pure capitalist economy would be<br>A)a system
Q120: A production possibilities curve represents<br>A)combinations of goods
Q121: Figure 2-3<br>Tonnes<br>of<br>Soybeans <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4981/.jpg" alt="Figure 2-3 Tonnes
Q122: Using a PPC graph,explain what we can