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.

---

Definitions:

Origins

The initial starting points or sources from which something arises, such as the beginnings of a supply chain or product development process.

Destinations

The end points or locations to which something is sent or where something is intended to go, often used in the context of transportation, logistics, or travel.

Optimal Solution

The best possible outcome or decision that maximizes or minimizes the desired objective within given constraints.

Transportation Model

A type of optimization and linear programming problem that concerns the allocation of resources to transport goods from multiple sources to multiple destinations in the most efficient and cost-effective manner.