Answer to Question #190260 in Macroeconomics for James

Question

QUESTION 8

Gains from trade come from:

1. Excessive negotiations.
2. Specializing in one’s comparative advantage.
3. Individuals becoming generalists.
4. Above.
5. All of the above.

QUESTION 9

Even without 100% specialization, if the trading price is greater than the country’s opportunity cost:

1. There are benefits to trading.
2. Is constant.
3. Is fixed.
4. No trades will take place.
5. All of the above.  

QUESTION 10

Why do countries trade?

1. International law requires them to.
2. They have similar comparative advantages.
3. They have identical comparative advantages.
4. They have different comparative advantages.
5. They have identical absolute advantages.

QUESTION 11

Absolute advantage simply compares the productivity of a worker:

1. In leaner years.
2. To the productivity of capital.
3. In one year to that same worker in a different year.
4. Between countries.
5. All of the above.

Answer 1

QUESTION 8

Gains from trade come from:

2.Specializing in one’s comparative advantage.

QUESTION 9

Even without 100% specialization, if the trading price is greater than the country’s opportunity cost:

1. There are benefits to trading. 

QUESTION 10

Why do countries trade?

4.They have different comparative advantages.

QUESTION 11

Absolute advantage simply compares the productivity of a worker:

4.Between countries.