The Idea of Comparative Advantage Is That

question 28

Multiple Choice

The idea of comparative advantage is that:

• A)each country can gain from trade as long as the opportunity cost of producing one good compared with another good is different between countries.
• B)every country can gain from trade as long as all countries can produce roughly the same quantity of each good.
• C)every country can gain from trade as long as the opportunity cost of producing one good compared with another good is the same as for other countries.
• D)every country can gain from trade as long as the absolute amount of exports equals imports.

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Definitions:

Operating Revenues

The income earned from a company's primary business activities, excluding one-time or unusual expenses or incomes.