Answered: Are the following staten1ents true or…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Are the following staten1ents true or false? Explain in
each case.
a. "1wo countries can achicv" 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
ad\'antage in """'}'thing 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 mLtSt be good
for everyone in th" country."

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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