Are the following staten1ents true or false? Explain ineach case.a. "1wo countries can achicv" gains from trade evenif one of the countries has an absolute advantagein the production of all goods."b. "Certain talented people have a comparativead\'antage in """'}'thing they do."c. "If a certain trade is good for one person, it can'tbe good for the other one.''d . ''If a certain trade is good for one person, it isalways good for the other one."e. "If trade is good for a country, it mLtSt be goodfor everyone in th" country."

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A: The answer is as follows:-

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Q: Explain how the gains from trade followfrom comparative advantage.

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Q: why countries trade goods and services, and why such trade can increasewelfare.

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Q: Write short notes on the following with example:     (a) Comparative advantage; (b) Absolute…

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Q: Questions attempted 2/38 26 of 38 cemiany nas a comparative advantage over England in the production…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: /ho gains more from trade, when nations are of unequal economiC size?

A: Gain is the rise in the value of an asset.

Q: Kayla can cook dinner in 30 minutes and wash thelaundry in 20 minutes. Her roommate takes twiceas…

A: The capacity of an economy or an individual to generate a specific product or service at a lower…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.