a) A country can have an absolute advantage in the production of a good, but not have a comparative advantage. b) Trade in products produced with increasing returns to scale is not driven by comparative advantage. c) A country with high government savings and high household savings will have a trade surplus. d) Migration of workers across countries could increase wages for all workers.

a) A country can have an absolute advantage in the production of a good, but not have a comparative advantage. b) Trade in products produced with increasing returns to scale is not driven by comparative advantage. c) A country with high government savings and high household savings will have a trade surplus. d) Migration of workers across countries could increase wages for all workers.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.3P

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