Which of the following statements about international trade is true?
A) Potentially, a country can have absolute advantage in all goods.
B) Potentially, a country can have relative advantage in all goods.
C) After trade, countries tend to specialize in the production of those goods in which they enjoy absolute advantage.
D) None of the above is true.
A
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What do you have to know to calculate the price elasticity of demand?
a. how much of the good was purchased at each of two different prices b. the price elasticity of supply c. how many firms supply the good d. the portion of income the typical consumer spends on the good
In the short-run, a rise in the money wage rate leads to
A) an increase in the price level and an increase in real GDP. B) an increase in the price level and a decrease in real GDP. C) an increase in the price level, but no change in real GDP. D) no change in the price level, but an increase in real GDP.