Question: An absolute advantage is a necessary condition for gains from trade. A) Yes B) No

An absolute advantage is a necessary condition for gains from trade.

A) Yes

B) No

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

16 Which of the following statements about Alpha and Omega is most accurate? a. Since Alpha has an absolute advantage in both goods, NO mutual gains from trade are possible. b. If Alpha specializes...

Q:

Consider the following information regarding two countries Alpha and Omega: Alpha can produce either 18 tons of oranges or 9 tons of apples in a year. Omega can produce either 16 tons of oranges or 4...

Q:

Which of the following statements about Alpha and Omega is most accurate? a. Since Alpha has an absolute advantage in both goods, NO mutual gains from trade are possible. b. If Alpha specializes in...

Q:

What is economics, and how do economic concepts apply to your life? With the complexities of technology and the current global economy, it may be helpful to consider a simplified and hypothetical...

Q:

22. Intra-industry trade between similar trading partners allows the gains from that arise when rms and workers specialize in the production of a certain product. A. comparative advantage B. learning...

Q:

Multiple Choice Questions: 1. Assume that the opportunity cost of producing a pair of pants in the United States is 2 pounds of rice, while in China, it is 5 pounds of rice. As a result, a. The...

Q:

Basic Economic Concepts What is economics and how do economic concepts apply to your life? With the complexities of technology and the current global economy, it may be helpful to consider a...

Q:

BASIC ECONOMIC CONCEPTS What is economics and how do economic concepts apply to your life? With the complexities of technology and the current global economy, it may be helpful to consider a...

Q:

Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. Which of the following statements is true? A. Alpha should export to Beta, but...

Q:

Hello, please help me answer the following prompts. Thank you. MODULE 1.4 COMPARATIVE ADVANTAGE AND TRADE This module introduces the concepts of comparative and absolute advantage, and explains the...

Q:

ABC firm's cost of equity capital is 12% and the tax rate of the majority of shareholders is 30%. Assume the brokerage is 3%. Calculate the costs of retained earnings.

Q:

A subdivision in Corvallis, Oregon, is shown in Figure P6.21. Rational method design is performed using the 10 - yr return period IDF curve of the Oregon Department of Transportation (1990) for Zone...

Q:

Maximum diversification is obtained by combining two stocks with a correlation coefficient equal to: Group of answer choices - 1 . 0 0 . 0 + 1 . 0 + 0 . 5

Q:

A pediatric practice has 5 physicians. They have a stable pool of patients that they see and the practice is not accepting new patients. Historically, patients were assigned to one physician and...

Q:

8. Based on a strategy that is used at your workplace, find information that goes against this strategy.

Q:

1. Provide new information that contains more than 59 items, depending on the recipients capacity.

Q:

3. Give away need to know information and you will get back information that you find useful.