If Two Countries Have Identical Opportunity Costs, Then

question 25

Multiple Choice

If two countries have identical opportunity costs, then:

• A)one country must be more productive in producing all goods than the other
• B)the benefits resulting from trade are increased
• C)there are no gains from specialisation and trade
• D)each country should specialise in the production of a particular commodity

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Definitions:

Surface Water

Water that is found on the surface of the earth, such as rivers, lakes, and ponds, as opposed to groundwater.

Earth's Water

The total amount of water present on Earth, including oceans, seas, rivers, lakes, ice caps, glaciers, and moisture in the atmosphere.

Heterotrophic

Organisms that cannot synthesize their own food and rely on other organisms for nutrition.

Producers

Organisms, typically plants and algae, that produce organic compounds from simple substances like carbon dioxide, essentially supporting most food chains.