Suppose That After Specializing According to Comparative Advantage, a Country

question 46

Multiple Choice

Suppose that after specializing according to comparative advantage, a country is trading with another nation that also specializes according to its comparative advantage. Which of the following statements are true for the first country?
i.It enjoys gains from trade.
ii.It must have an absolute advantage in the production of the good it produces.
iii) It is producing at a point beyond its PPF.

• A)i and iii
• B)i and ii
• C)i only
• D)i, ii, and iii
• E)ii and iii

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Definitions:

Environmental Influences

External factors that affect an individual's behavior, decisions, and lifestyle.

Performance Appraisals

The systematic evaluation of employees' job performance and productivity to provide feedback, guide future performance, and inform decisions on promotions, compensations, and development.

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Strategies and methods used by organizations to identify, attract, and select potential employees.

Behavioral Science

The study of human and animal behavior through observation and experimentation, applying multidisciplinary principles.