If Country A has an absolute advantage over Country B in the production of every commodity,
a. mutual gains from trade between Country A and Country B would be impossible.
b. Country B would be able to gain from trade but not country A.
c. the joint output of the two countries could not be increased through specialization and exchange.
d. mutual gains from trade would still be possible.
D
Economics
You might also like to view...
Rising economic indicators typically signal ________ in the economy.
A. expansion B. depression C. recession
Economics
A tax is sometimes used by government to correct the problems associated with
A) negative externalities. B) positive externalities. C) internal benefits. D) external benefits.
Economics