According to the Comparative Advantage Model of Trade,to Maximize Its

question 136

Multiple Choice

According to the comparative advantage model of trade,to maximize its gains from trade,a nation should

• A) maximize net exports (or its trade surplus).
• B) export products in which it has a comparative advantage.
• C) export as many products as possible by subsidizing domestic producers that could not otherwise compete with foreign producers.
• D) create jobs by subsidizing the industries that employ the largest number of workers.
• E) subsidize the purchase of imports in order to achieve the highest level of total consumption.

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