If Country a Has an Absolute Advantage Over Country B

question 73

Multiple Choice

If Country A has an absolute advantage over Country B in the production of every commodity,

• A) mutual gains from trade between Country A and Country B would be impossible.
• B) Country B would be able to gain from trade but not country A.
• C) the joint output of the two countries could not be increased through specialization and exchange.
• D) mutual gains from trade would still be possible.

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Definitions:

Liquidity Ratios

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Mission and Vision

Statements that articulate a company's purpose and aspirations, guiding its strategy, goals, and organizational culture.