If Country a Can Produce More of Practically Everything Than

question 9

Multiple Choice

If country A can produce more of practically everything than can country B, then which of the following statements is true?

• A)Country A has no incentive to trade with country B.
• B)Country B cannot have a comparative advantage in the production of any good that country A wants to buy.
• C)Trade can benefit both countries.
• D)Country B has no incentive to trade with country A.

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Definitions:

Equality

The state of being equal, especially in status, rights, and opportunities.

Output

The complete sum of products or services generated by an individual, device, company, or economic system.

Total Surplus

The aggregate benefit to society, represented by the consumer and producer surplus, from the consumption and production of a good or service.

Value to Buyers

The perceived benefit or satisfaction that consumers derive from purchasing and consuming a product or service, influencing their willingness to pay.