In a Two-Nation, Two-Good World, If Both Nations Have Identical

question 81

Multiple Choice

In a two-nation, two-good world, if both nations have identical production possibilities curves with constant costs, then one nation would have

• A) no comparative advantage over the other nation.
• B) a comparative advantage in one good and a comparative disadvantage in the other good.
• C) no absolute advantage over the other nation.
• D) an absolute advantage in one good and an absolute disadvantage in the other good.

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