Comparative advantage indicates that:
A. specialization and exchange will permit trading partners to maximize their joint consumption.
B. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.
C. a nation can gain from trade only when its trading partners are not low-wage countries.
D. countries should export products for which they are high-opportunity cost producers.
Answer: A
You might also like to view...
In 2001, Alex Rodriguez, a baseball player, was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect
a. True b. False Indicate whether the statement is true or false
After browsing his cabinets to see what meals he can make, Ken is deciding whether to make nachos or spaghetti for dinner. If Ken makes spaghetti, we can conclude:
A. Ken doesn't like nachos. B. Ken prefers nachos over spaghetti. C. Ken will get more utility from making spaghetti for dinner than nachos. D. None of these is true.