Question

Are the following statements true or false? Explain in each case. a. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods." b. "Certain talented people have a comparative advantage in everything they do." c. "If a certain trade is good for one person, it can"t be good for the other one." d. "If a certain trade is good for one person, it is always good for the other one." e. "If trade is good for a country, it must be good for everyone in the country."

Name: are the following statements true or false explain in each case a two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods b c 2
Uploaded: 2021-08-18T14:02:39-08:00
Duration: 3 min 24 s
Channel: Juan Nicolás
Description: are the following statements true or false explain in each case a two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods b c 2

          Are the following statements true or false? Explain in each case.
a. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods."
b. "Certain talented people have a comparative advantage in everything they do."
c. "If a certain trade is good for one person, it can"t be good for the other one."
d. "If a certain trade is good for one person, it is always good for the other one."
e. "If trade is good for a country, it must be good for everyone in the country."

Added by Patrick E.

Principles of Economics

Gregory Mankiw 8th Edition

Chapter 3

Instant Answer

Solved by Expert Juan Nicolás

08/18/2021

Step 1

False. Even if one country has an absolute advantage in the production of all goods, both countries can still benefit from trade. This is because trade allows countries to specialize in producing the goods they have a comparative advantage in, which leads to Show more…

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Are the following statements true or false? Explain in each case. a. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of all goods." b. "Certain talented people have a comparative advantage in everything they do." c. "If a certain trade is good for one person, it can"t be good for the other one." d. "If a certain trade is good for one person, it is always good for the other one." e. "If trade is good for a country, it must be good for everyone in the country."