Suppose That After Specializing According to Comparative Advantage,a Country Is

question 222

Multiple Choice

Suppose that after specializing according to comparative advantage,a country is trading with another nation that also specializes according to its comparative advantage.Which of the following statements are true for the first country?
i.It enjoys gains from trade.
ii.It must have an absolute advantage in the production of the good it produces.
iii.It is producing at a point beyond its PPF.

• A) i only
• B) i and ii
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Recognize

To identify someone or something from having encountered them before; to acknowledge the existence, validity, or legality of something.

Client Records

Confidential documents that contain personal and sensitive information about individuals receiving services from professionals.

Performance Evaluation

The systematic assessment of an employee's work performance, usually conducted on a regular basis.

Accurately

Refers to the degree of closeness of a measurement to the true or accepted value.