In a Two-Nation, Two-Good World, Which of the Following Statements

question 172

Multiple Choice

In a two-nation, two-good world, which of the following statements is true?

• A) One nation cannot possibly have an absolute advantage over the other nation in both products.
• B) If one nation has the comparative advantage in one product, then the other nation would have the comparative advantage in the other product.
• C) One nation will always have the comparative advantage over the other nation in one of the products.
• D) If one nation has the absolute advantage in one product, then the other nation would have the absolute advantage in the other product.

---

Definitions:

Amalgamation

The process of combining two or more companies into a single new entity, typically to enhance competitive strengths or streamline operations.

Legal Procedures

Established methods and protocols under law by which rights or judgements are enforced and disputes are resolved.

Stock Exchange Bid

An offer made by an investor to buy a specific number of shares at a specified price on a stock exchange.

Control Block

A large number of shares, sufficient to give the shareholder significant influence or control over the company.