Two Countries Will Choose to Specialize and Trade Only If

question 68

Multiple Choice

Two countries will choose to specialize and trade only if:

• A)the terms of trade fall between their opportunity costs for producing the goods on their own.
• B)the opportunity costs are the same between the two nations.
• C)the opportunity costs are astronomically high for producing the goods on their own.
• D)one country possesses the absolute advantage in both goods,but the comparative advantage in only one good.

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Definitions:

Argument by Analogy

A form of reasoning in which an argument or claim is supported by drawing a comparison between two similar situations or cases.

Similarities

Refers to the aspects or qualities that two or more entities have in common.

Dissimilarities

The state or quality of being unlike or different in nature, form, or quality.

Relevance

The degree to which something is related or useful to the matter at hand.