When Each Country Specializes in Producing the Good for Which

question 61

Multiple Choice

When each country specializes in producing the good for which it has a comparative advantage:

• A) both countries may benefit.
• B) both countries always enjoy equal gains from trade.
• C) the country that is bigger will gain more surplus.
• D) the country with the weaker economy will gain more surplus.

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Definitions:

Leisure

Free time when an individual is not working and can relax, enjoy hobbies, or undertake recreational activities.

Social Media

Digital platforms that enable users to create, share content, and participate in social networking.

Recreation

Activities done for enjoyment, leisure, or relaxation outside of one's regular duties or work.

Leisure

Free time when one is not working or attending to other duties, often used for relaxation, entertainment, or hobbies.