Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country
A) total employment is greater. B) total welfare is greater.
C) total consumption of goods is greater. D) wages are higher.
C
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A country with a lower relative cost of production of a particular good has a(n) _______ advantage and it is likely to _______ this good.
A) absolute; import B) comparative; import C) comparative; export D) absolute; not export
Which of the following is true of the European Currency Unit?
a. It was used by the European nations as a medium of exchanging goods and services. b. It was an accounting entry that was transferred between two European nations. c. It was replaced by the euro in the early 1980s. d. It was denominated in the British pound. e. It was a primary international reserve asset of most of the nations across the world.