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Suppose That After Specializing According to Comparative Advantage,a Country Is

question 222

Multiple Choice

Suppose that after specializing according to comparative advantage,a country is trading with another nation that also specializes according to its comparative advantage.Which of the following statements are true for the first country?
i.It enjoys gains from trade.
ii.It must have an absolute advantage in the production of the good it produces.
iii.It is producing at a point beyond its PPF.


Definitions:

Complete Package

A product or deal that includes everything needed for a particular purpose or requirement, leaving nothing out.

Reasonable Basis

A standard which requires that claims, especially in law and finance, must have a foundation that is logically sound and justifiable.

Generalities

Statements or ideas that are broad and unspecific, lacking in detailed explanation or specificity.

Exaggerations

Statements that stretch the truth or overstate facts.

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