Which of the following statements is true?

A) The principle of comparative advantage provides a basis for trade when two nations have the same opportunity cost of producing a good.
B) The principle of absolute advantage provides a basis for the determination of the terms of trade between two trading nations.
C) The principle of absolute advantage forms the basis of trade when a nation can produce more of all the goods and services compared to the other nations.
D) The principle of comparative advantage provides a range of prices within which trade will occur.

D

Economics

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If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the economy?

(A) Taxes decrease (B) Investment decreases (C) Investment increases (D) Taxes increase

Economics

If steel manufacturers expected that the price of steel was going to rise in the next six months, this would

a. have no change in the competitive market for steel b. lead to a decreased demand for steel c. lead to a decreased supply of steel d. increase the future demand for automobiles e. lead to a decrease in the quantity of steel supplied to the market

Economics