Which of the following can be categorized as a commodity money ...

[xroflmao]

Which of the following can be categorized as a commodity money standard?
 a. The pegged exchange rate standard
  b. The free float standard
  c. The managed float standard
  d. The reserve currency standard
  e. The gold standard

Question 2

Explain why it is not possible for a country to have comparative advantage in the production of all goods.

[Ksh22]

Answer to Question 1

e

Answer to Question 2

If a certain country is more efficient at producing all goods than its trading partners, the country in question would have an absolute advantage in the production of these goods. However, a greater capacity of producing good A would imply a greater opportunity cost of producing good B. In this way, the country in question cannot have lower opportunity costs for all goods.