Problemas
Mark for Review If two nations specialize according to their individual comparative advantages and engage in trade, then which of the following must be true? A Nations would be better off if they were self-sufficient. B If one nation gains from trade with the other nation, then the other nation will lose. C Both nations can consume beyond their individual production possibilities. D (D) Both nations can consume only what they produce.
Roztwór
Adrián
professionell · Tutor durante 6 años
4.7
(149 Votos)
Respuesta
'C'
Explicación
## Step 1The problem is about the concept of comparative advantage in economics. Comparative advantage is a theory that suggests that countries should specialize in producing the goods that they can produce most efficiently and trade with other countries for other goods. This theory is based on the idea that countries can benefit from trade by specializing in the production of goods that they can produce most efficiently and trading for other goods.## Step 2Option A suggests that nations would be better off if they were self-sufficient. This is not necessarily true. While self-sufficiency can be beneficial in certain situations, it is not always the case. In fact, self-sufficiency can often lead to inefficiencies and a lack of specialization, which can hinder economic growth.## Step 3Option B suggests that if one nation gains from trade with the other nation, then the other nation will lose. This is also not true. The principle of comparative advantage suggests that both nations can benefit from trade, not just one.## Step 4Option D suggests that both nations can consume only what they produce. This is not true either. The principle of comparative advantage suggests that nations can consume more than they produce by trading with other nations.## Step 5Option C suggests that both nations can consume beyond their individual production possibilities. This is true. The principle of comparative advantage suggests that nations can consume more than they produce by trading with other nations. This is because each nation specializes in producing the goods that they can produce most efficiently and then trades for other goods. This allows each nation to consume more than they could produce on their own.