Two Countries Will Choose to Specialize and Trade Only If

question 134

Multiple Choice

Two countries will choose to specialize and trade only if:

• A) the terms of trade fall between their opportunity costs for producing the goods on their own.
• B) the opportunity costs are the same for the two nations.
• C) the opportunity costs are astronomically high for producing the goods on their own.
• D) one country possesses the absolute advantage in both goods, but the comparative advantage in only one good.

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Definitions:

Roger Taney

Chief Justice of the U.S. Supreme Court best known for delivering the majority opinion in the Dred Scott case, which declared African Americans could not be American citizens.

Sectional Debates

Disagreements and discussions that occur between different regions or sections of a country, often related to political, social, or economic issues.

Liberties and Freedoms

Fundamental rights and protections guaranteed by law or constitution, including speech, religion, and the right to privacy, that cannot be infringed upon by governments.

Slave States

States in the United States before the Civil War where slavery was legally practiced.