A country can benefit by indulging in international trade when: ...

[soccerdreamer_17]

A country can benefit by indulging in international trade when:
 a. it produces a good in which it has absolute disadvantage.
  b. it produces a good in which its trading partner has an absolute advantage.
  c. it produces a good in which it has comparative advantage.
  d. it produces all the goods which are supported by its resources.
  e. it produces nothing and merely depends on foreign imports.

Question 2

The tendency of those who are insured to take more risks as a result is a problem of:
 a. free riding.
 b. moral hazard.
 c. adverse selection.
 d. positive externalities.

[hugthug12]

Answer to Question 1

c

Answer to Question 2

b

[soccerdreamer_17]

Excellent

[bitingbit]

Gracias!