According to the theory of comparative advantage, A. A country can gain from trade only if it can produce all goods at a lower cost than its trade partner B. A country can gain from trade only if it can produce a good more efficiently than the other country

According to the theory of comparative advantage, A. A country can gain from trade only if it can produce all goods at a lower cost than its trade partner B. A country can gain from trade only if it can produce a good more efficiently than the other country

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 16P

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According to the theory of
comparative advantage,
A. A country can gain
from trade only if it can
produce all goods at a
lower cost than its trade
partner
B. A country can gain
from trade only if it can
produce a good more
efficiently than the other
country
C. Any country can gain
from trade
D. Only high income
countries will gain from
trade

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