Author Question: Comparative advantage explains why a nation will benefit from trade when: a. it exports more than ... (Read 62 times)

sc00by25 · **on:** Jun 30, 2018

Comparative advantage explains why a nation will benefit from trade when:
a. it exports more than it imports.
b. its trading partners are experiencing offsetting losses.
c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.
d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

Question 2

Cost-push inflation is caused by too much money chasing too few goods.
a. True
b. False
Indicate whether the statement is true or false