AaBbCcDdEe AaBbCcDdEe AaBbCCD Normal No Spacing Heading 1 Trade enables countries to: Provides a surplus of all goods and services to each trading country Consume a combination of goods and services that lies outside their domestic production possibilities curve Produce a combination of goods and service outside their domestic production possibilities curve Guarantee that resources will never be mis-allocated Comparative Advantages may be defined as: The ability of a country to produce a good using fewer resources than another country. None of the other answers presented is correct. The ability of a country to produce at a lower marginal cost than another country. The ability of a country to produce a good at a lower opportunity cost than another country. OUTPUT PER UNIT OF INPUT) Klondike Bars Pretzels U.S. 150 75 Canada 120 40 The opportunity cost for Canada to produce one (1) Pretzel is: 3 40/75 75/40 ,333