Two countries that specialize their production along the lines of comparative advantage and then trade with each other will be able to

A. both produce and consume more.
B. produce less and consume more.
C. produce more and consume less.
D. both produce and consume less.

Answer: A

Economics

You might also like to view...

What relationships do a firm's short-run cost curves show?

What will be an ideal response?

Economics

Suppose the market for grass seed can be expressed as

Demand: QD = 100 - 2p Supply: QS = 3p At the market equilibrium, calculate the price elasticities of supply and demand. Use these numbers to predict the change in price resulting from a specific tax.

Economics