Two Nations Want to Engage in Trade but Discover That

question 62

Multiple Choice

Two nations want to engage in trade but discover that one of them is more efficient in producing all goods.In this case,

• A)each nation should export the good in which it has a comparative advantage.
• B)no trade is possible.
• C)the more efficient country should produce all goods and export them.
• D)the less efficient country should engage in importation of goods only.
• E)the more efficient country should import all goods.

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Definitions:

Protective Layer

A covering or barrier that shields an object, surface, or organism from harmful external factors.

Sensory Adaptation

Sensory Adaptation depicts the process by which individuals become less sensitive to unchanging stimulus over time as the sensory receptors diminish their response.

Litter Box

A container filled with loose, absorbent material, used for cats to excrete in indoors.

Odor

A distinctive smell or the quality of a thing that can be perceived by the olfactory sense.