Comparative advantage explains why a nation will benefit from trade when:
a. it exports more than it imports.
b. its trading partners are experiencing offsetting losses.
c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
d
You might also like to view...
Which of the following is the best example of an artificially scarce good?
a. premium cable channels b. lobster c. college classes d. gasoline
The above figure shows the supply and demand curves for rice in the U.S. and in Japan. Assume there is no trade between the two countries
If fertilizer price drop causes the supply curves in both countries to shift rightward by the same amount, then A) the quantity will increase the same amount in both counties. B) the quantity will decrease the same amount in both countries. C) the quantity will increase more in Japan than in the U.S. D) the quantity will increase more in the U.S. than in Japan.