If One of Two Countries Has an Absolute Advantage in the Production

question 6

Multiple Choice

If one of two countries has an absolute advantage in the production of every commodity, then:

• A)there is no comparative advantage and therefore no trade.
• B)trade would be profitable for the inefficient country, but not for the efficient one.
• C)trade would be profitable for the efficient country, but not the inefficient one.
• D)total world production cannot be increased by specialization and trade.
• E)none of the above are true.

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Definitions:

Details

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Tip-Of-The-Tongue Phenomenon

The feeling that one is on the verge of recalling a word or name but unable to produce it.

Visual Cortex

The part of the cerebral cortex responsible for processing visual information, located in the occipital lobe of the brain.

Neural Events

Biological processes and activities that occur within the nervous system, including the transmission of nerve impulses.