The Gains from Trade That Are Possible When Two Countries

question 58

Multiple Choice

The gains from trade that are possible when two countries have different opportunity costs for wheat and coffee are realized when

• A) trade occurs and resources are reallocated within the two countries.
• B) the two countries continue to produce the same quantities of wheat and coffee.
• C) each country has an absolute advantage in one of the two commodities.
• D) the demand curves in both countries shift inward.

---

Definitions:

Official Communication

Communication that is formally exchanged among members or parties in an organization or between organizations.

You-Attitude

An approach in communication that emphasizes understanding and addressing the preferences, interests, and expectations of the audience.

Techniques

Specific methods or procedures used to accomplish tasks or solve problems in various fields.

Passive Verbs

Verbs that show the subject of the sentence receiving the action rather than performing it.