Suppose that the United States and Cuba decide to open up trade. ...

[@Brianna17]

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, ________ will gain from that trade because ________.
 
  A) both countries; consumption possibilities in both Cuba and the United States will lie outside their PPFs.
  B) neither country; their consumption possibilities will not change.
  C) only the United States; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change.
  D) only Cuba; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change.

Question 2

The reservation value of a seller reflects her ________.
 
  A) willingness to pay for using a resource
  B) marginal cost
  C) marginal revenue
  D) total cost

[Cnarkel]

Answer to Question 1

A

Answer to Question 2

B