If Country a Can Produce Computers More Efficiently Than Cars

question 31

Multiple Choice

If country A can produce computers more efficiently than cars relative to country B, then trade theory tells us that

• A)the two countries should trade only if country B has an absolute advantage in car production.
• B)country B will only gain from trade if it has an absolute advantage in car production.
• C)country B must have an absolute advantage in car production.
• D)both can gain from trade regardless of who has the absolute advantage in car production.
• E)country A should not trade with country B.

---

Definitions:

Calcium

A chemical element that is essential for living organisms, primarily in bone formation and metabolic functions.

Uric Acid

A chemical created when the body breaks down substances called purines, elevated levels of which can lead to gout and kidney stones.

Gout

A form of arthritis characterized by sudden, severe attacks of pain, swelling, and redness, often in the big toe, caused by excess uric acid.

Arthritis

Inflammation of one or more joints, causing pain and stiffness.