Multiple Choice
Spain allows trade with the rest of the world.We know that Spain has a comparative advantage in producing olive oil if we know that
A) Spain imports olive oil.
B) the world price of olive oil is higher than the price of olive oil that would prevail in Spain if trade with other countries were not allowed.
C) consumer surplus in Spain would exceed producer surplus in Spain if trade with other countries were not allowed.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Assume,for Mexico,that the domestic price of oranges
Q10: The price of sugar that prevails in
Q12: The principle of comparative advantage asserts that<br>A)not
Q13: Patterns of trade among nations are primarily
Q15: For any country,if the world price of
Q16: Assume,for Mexico,that the domestic price of beets
Q17: If the world price of apples is
Q18: For any country,if the world price of
Q19: Assume,for England,that the domestic price of wine
Q33: If a country allows trade and, for