Two Parties Can Capture Gains from Specialization and Trade Whenever:​

question 16

Multiple Choice

Two parties can capture gains from specialization and trade whenever:​

• A)one party is twice as good at producing all goods as the other.
• B)the opportunity costs of producing each good are the same for both parties.
• C)both parties can produce equal amounts of both goods.
• D)there is a difference in the endowment of resources in the two countries.
• E)they both produce the same good or service, but in differing amounts.