Author Question: A country engaging in trade according to the principles of comparative advantage gains from trade ... (Read 85 times)

karateprodigy · **on:** Jun 30, 2018

A country engaging in trade according to the principles of comparative advantage gains from trade because it

A) is producing exports indirectly more efficiently than it could alternatively.
B) is producing imports indirectly more efficiently than it could domestically.
C) is producing exports using fewer labor units.
D) is producing imports indirectly using fewer labor units.
E) is producing exports while outsourcing services.

Question 2

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor, and to raise the incomes of other factors.

Indicate whether the statement is true or false