Fill in the blanks to make the following statements correct. a. The gains from trade refers to
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a. The "gains from trade" refers to the increased caused by specialization and trade.
b. Suppose Argentina can produce one kilogram of beef for $2.50 and Brazil can produce one kilogram of beef for $2.90. Argentina is said to have an ______ in beef production over Brazil. The gains from trade do not depend on ______.
c. Comparative advantage is based on ______ rather than absolute costs.
d. It is possible for a country to have a comparative advantage in some good and an ______ in none.
e. If all countries specialize in the production of goods for which they have a comparative advantage, then world output will ______.
f. If opportunity costs are the same in all countries, there is no ______and no possibility of ______.
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Related Book For
Microeconomics
ISBN: 978-0321866349
14th canadian Edition
Authors: Christopher T.S. Ragan, Richard G Lipsey
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