29 Multiple Choice 2 points Gains from trade come about as a result of comparative advantage. By specializing in a good that it gives up the least to produce, a country can produce more and offer that additional output for sale. A. competitive advantage B. comparative advantage C. absolute advantage Previous Next 20 21 22 23 24 25 26 27 28 29 30 Navigate to question at position 29, unanswered
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Step 2: Let's analyze the options: A. Competitive advantage: This refers to the ability of a firm or a country to produce goods or services more effectively than its competitors. While related to trade, it's not the direct economic principle explaining gains from Show more…
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If a nation has a comparative advantage in the production of technology services, this means the nation: Group of answer choices cannot benefit by producing and trading this product. has a production possibilities curve identical to those of other nations. must give up less of other goods or services than other nations to produce a unit of technology services. is not subject to increasing opportunity costs.
Sanchit J.
17. The trading principle formulated by Adam Smith maintained that a. international prices are determined from the demand side of the market. b. differences in resource endowments determine comparative advantage. c. differences in income levels govern world trade patterns. d. absolute cost differences determine the immediate basis for trade. 18. According to the principle of comparative advantage, specialization and trade increase a nation's total output since a. resources are directed to their highest productivity. b. the output of the nation's trading partner declines. c. the nation can produce outside of its production possibilities frontier. d. the problem of unemployment is eliminated.
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