The Division of the Gains from Trade Between Two Trading

question 58

Multiple Choice

The division of the gains from trade between two trading countries depends on the

• A)difference between the terms of trade and the countries' autarkic relative prices.
• B)long-run costs.
• C)quantity of resources held by each country.
• D)level of unemployment in both countries.
• E)size of the absolute advantages possessed by each country.

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