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:

Caregiver

An individual who provides care and support to someone who is aged, disabled, or suffering from chronic illness, often a family member or professional aide.

Secure Attachment

A healthy emotional bond formed between a child and their caregiver, characterized by trust, safety, and a sense of being understood.

Toddler

A young child, especially one who is learning or has just learned to walk, typically between one to three years old.

Explore

To travel through or investigate an unfamiliar area or subject to learn more about it.