If in a two-nation (A and B) ,two-commodity (X and Y) world,it is established that nation A has a comparative advantage in commodity X,then nation B must have:
A) an absolute advantage in commodity Y
B) an absolute disadvantage in commodity Y
C) a comparative disadvantage in commodity Y
D) a comparative advantage in commodity Y
Correct Answer:
Verified
Q3: A difference in relative commodity prices between
Q4: According to Adam Smith,international trade was based
Q5: The Mercantilists did not advocate:
A)free trade
B)stimulating the
Q6: With reference to the statement in Question
Q7: Ricardo explained the law of comparative advantage
Q8: In the trade between a small and
Q10: What proportion of international trade is based
Q11: The commodity in which the nation has
Q12: If domestically 3X=3Y in nation A,while 1X=1Y
Q13: The Ricardian trade model has been empirically
A)verified
B)rejected
C)not
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