3. 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 very 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."

3. 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 very 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."

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1.Using the concept of free trade and the 3 free trade theories discussed in the class materials, explain the difference between absolute advantage and comparative advantage. Explain the difference between free trade and fair trade. Provide an example of your own household or work experience.
Please do D and E
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