If There Is No Comparative Advantage Between Two Countries

question 68

Multiple Choice

If there is no comparative advantage between two countries:

• A) one country must be more productive in producing all goods than the other.
• B) the benefits resulting from trade are increased.
• C) there are no gains from specialization and trade.
• D) each country should specialize in the production of a particular commodity.

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Definitions:

Independent Carmakers

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Federal Economic Policies

The set of decisions made at the national government level that influence a country's economic activities, including taxation, spending, and monetary regulation.

19th Century

Refers to the years from 1801 to 1900, a period marked by significant industrial, social, and political changes worldwide.

Earliest Antitrust Act

Legislation aimed at promoting competition and preventing monopolies, often referring to the Sherman Antitrust Act of 1890 in the United States.