In a Two-Nation, Two-Good World, If Country a Has the Comparative

question 7

Multiple Choice

In a two-nation, two-good world, if country A has the comparative advantage in producing good X over country B, then country A

• A) should not trade with country B.
• B) could have the comparative advantage in producing the other good, Y, as well.
• C) must have the comparative disadvantage in producing the other good, Y.
• D) can produce good X with fewer resources than country B.

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