If Two Countries Agree to Specialize and Trade Based on Comparative

question 32

Multiple Choice

If two countries agree to specialize and trade based on comparative advantage,which of the following is most likely to be true?

• A)Both of the countries will consume outside their respective production possibilities curves.
• B)One of the countries will end up receiving all of the gains from trade.
• C)One of the countries will both consume and produce on its production possibilities curve.
• D)Only one of the countries will produce on and consume outside its production possibilities curve.

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Definitions:

Sexual Relationships

Intimate connections between individuals that often include physical and emotional intimacy, as well as sexual activity.

Common Ancestor

An ancestral form or species from which two or more descendant species evolved.

Theory of Evolution

A scientific theory proposing that species change over time through natural selection and genetic variations.

Nature and Nurture

The debate concerning the relative importance of an individual's innate qualities versus personal experiences in determining or causing differences in physical and behavioral traits.