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Which of the following statements is correct? O Only when a country has an absolute advantage in producing all goods will it not benefit from trade. O lf a country has a comparative advantage in the production of a good, it must be the case that they have an absolute advantage in the same good. Gains from trade come from taking advantage of differing opportunity costs. O The gains from specialization and trade depend solely on respective explicit costs.

Which of the following statements is correct? O Only when a country has an absolute advantage in producing all goods will it not benefit from trade. O lf a country has a comparative advantage in the production of a good, it must be the case that they have an absolute advantage in the same good. Gains from trade come from taking advantage of differing opportunity costs. O The gains from specialization and trade depend solely on respective explicit costs.

Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains Rrom Trade
Section: Chapter Questions
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Which of the following statements is correct? O Only when a country has an absolute advantage in producing all goods will it not benefit from trade. O If a country has a comparative advantage in the production of a good, it must be the case that they have an absolute advantage in the same good. O Gains from trade come from taking advantage of differing opportunity costs. O The gains from specialization and trade depend solely on respective explicit costs.
Transcribed Image Text:Which of the following statements is correct? O Only when a country has an absolute advantage in producing all goods will it not benefit from trade. O If a country has a comparative advantage in the production of a good, it must be the case that they have an absolute advantage in the same good. O Gains from trade come from taking advantage of differing opportunity costs. O The gains from specialization and trade depend solely on respective explicit costs.
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