If a nation has no absolute advantage,then it
A)cannot gain from trade.
B)still gains from trade.
C)can only gain from trade if it raises its productivity levels.
D)can only gain from trade if it produces outside its production possibilities curve.

Question

Quizplus · Accepted Answer

A nation may have comparative advantage even if it doesn't have an absolute advantage in any area of production. This means that it can still benefit from trading with other nations by focusing on producing the goods and services that it is relatively more efficient in producing. Thus, the correct answer is B - the nation still gains from trade.

If a Nation Has No Absolute Advantage,then It