If There Is No Comparative Advantage in the Production of Either

question 109

Multiple Choice

If there is no comparative advantage in the production of either of the two goods produced by countries 1 and 2,then

• A) the benefits resulting from trade between the two countries are increased.
• B) there are no gains from specialization and trade between the two countries.
• C) one country must be more productive in producing all goods than the other.
• D) each country should specialize in the production of a particular good.
• E) none of the above

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Definitions:

Restatement (Second)

A collection of model legal principles designed to clarify, modernize, and otherwise improve American common law, particularly in contracts and torts.

Intoxication

A state of being under the influence of drugs or alcohol, affecting cognitive and physical functions.

Legal Age

The age at which an individual is recognized by law as being capable of entering into a legally binding contract, among other adult responsibilities and rights.

Capacity to Enter

The legal ability of a person to enter into a binding contract, typically requiring them to be of a certain age and sound mind.