Two Countries with Differing Comparative Advantages May Engage in Trade

question 18

Multiple Choice

Two countries with differing comparative advantages may engage in trade because

• A)They will be able to consume more goods in total due to specialization and trade.
• B)They will achieve an absolute advantage with one another.
• C)They will be able to produce and consume goods on their production possibilities curves.
• D)They are required to because they are part of the World Trade Organization.

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