According to the theory of comparative advantage, countries gain from trade because ___a. trade makes firms behave more competitively, reducing their market power. ___b. all firms can take advantage of cheap labor. ___c. output per worker in each firm increases. ___d. world output can rise when each country specializes in what it does relatively best. ___e. every country has an absolute advantage in producing something.

According to the theory of comparative advantage, countries gain from trade because _a. trade makes firms behave more competitively, reducing their market power. _b. all firms can take advantage of cheap labor. _c. output per worker in each firm increases. _d. world output can rise when each country specializes in what it does relatively best. ___e. every country has an absolute advantage in producing something.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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