If We Are to Demonstrate Gains from Trade in the Theory

question 8

Multiple Choice

If we are to demonstrate gains from trade in the theory of comparative advantage, it is necessary to assume that:

• A)one country must have an absolute advantage in the production of both goods.
• B)one country cannot have an absolute advantage in the production of both goods.
• C)one country must be considerably larger than the other.
• D)a country must be relatively more efficient in the production of one of the goods.
• E)factors of production have to be free to move between countries.

---

Definitions:

Date-Rape Drug

Substances used to incapacitate someone in order to commit sexual assault.

Rohypnol

A potent sedative drug that is part of the benzodiazepine class, often associated with instances of drug-facilitated sexual assault.

Ketamine

A powerful medication primarily used for anesthesia but also studied for its effects on treating depression.

Anesthetic

A substance that causes loss of sensation or consciousness, used to prevent pain during surgeries and medical procedures.