Solved

Suppose That Country a Is Twice as Good at Producing

Question 58

Multiple Choice

Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A,


A) the comparative advantage will be canceled out.
B) trade will be an improved outcome for both A and B.
C) the comparative advantage could possible be canceled out depending on how much it costs to produce the widget in country B.
D) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents