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.

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Definitions:

Shoemakers' Strike

A collective action or labor strike by shoemakers or cobblers, which historically could refer to various protests or strikes for better wages or working conditions.

Indentured Servants

Laborers under contract to work for a specific employer for a set period in exchange for transportation, food, and accommodation, common in the American colonies and elsewhere from the 17th to 19th centuries.

Irish Immigrants

People from Ireland who moved to other countries in search of better living conditions, especially during the 19th century due to the Great Famine.

Religious Dissenters

Individuals who oppose or refuse to conform to the established religious orthodoxy of their society.