Spain Allows Trade with the Rest of the World

question 14

Multiple Choice

Spain allows trade with the rest of the world.We know that Spain has a comparative advantage in producing olive oil if we know that

• A)Spain imports olive oil.
• B)the world price of olive oil is higher than the price of olive oil that would prevail in Spain if trade with other countries were not allowed.
• C)consumer surplus in Spain would exceed producer surplus in Spain if trade with other countries were not allowed.
• D)All of the above are correct.

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Definitions:

Uncompensated Health Care

Medical services provided to individuals without receiving payment or with partial payment, often resulting in financial loss for the care provider.

Emergency Care

Medical services provided for sudden or urgent health conditions requiring immediate attention.

Marginal Cost

The added expense from making one more unit of a product or service.

Marginal Benefit

The extra advantage or happiness derived from the use of one more unit of a good or service.