Trade between countries ( )
A: allows
each country to consume at a point outside its production
possibilities frontier.
B: limits
a country’s ability to produce goods and services on its own.
C: must
benefit both countries equally; otherwise, trade is not mutually
beneficial.
D: can
best be understood by examining the countries’ absolute
advantages.
A: allows
each country to consume at a point outside its production
possibilities frontier.
B: limits
a country’s ability to produce goods and services on its own.
C: must
benefit both countries equally; otherwise, trade is not mutually
beneficial.
D: can
best be understood by examining the countries’ absolute
advantages.
举一反三
- Which of the the following statements is true true ? ( ) A: “Two countries can achieve gains from trade even if one of the<br/>countries has an absolute advantage in the production of all goods.” B: “Certain very talented people have a comparative advantage in<br/>everything they do.” C: “If a certain trade is good for one person, it can’t be<br/>good for the other one.” D: “If trade is good for a country, it must be good for everyone in the country.”
- Trade between two countries can benefit both countries if
- Trade between two countries can benefit both countries if() A: each country exports that good in which it has comparative advantage. B: each country enjoys superior terms of trade. C: each country has a more elastic demand for imported goods. D: each country has a more elastic supply for the exported goods.
- ( ) determines the direction of trade and the limits to<br/>mutually beneficial trade. A: Specialization B: Absolute advantage C: Factor abundance D: Comparative advantage
- According<br/>to the Marshall-Lerner condition, currency depreciation would have a<br/>negative effect on a country's trade balance if the elasticity of<br/>demand for its exports plus the elasticity of demand for its imports<br/>equals() A: 0.5 B: 1.0 C: 1.5 D: 2.0