The gains from two nations depend on:Select one:a.Domestic barter ratesb.Different in the domestic barter rates of the two countriesc.Terms of traded.Degree of absolute advantage.

. Trade between two countries can benefit both countries ifA) each country enjoys superior terms of trade.B) each country has a more elastic demand for the imported goods.C) each country has a more elastic supply for the exported goods.D) each country produces a wide range of goods for export.E) each country exports that good in which it has a comparative advantage.

In the Ricardian model, one of the countries does not gain from trade, while another enjoys gains from trade when  Countries have similar technologies Correct Answer  One country is much larger than another   Countries have different technologies and are of comparable size You Answered  One country has comparative advantage in production of both goods

How do countries develop a comparative advantage over their trading partners?A.By producing more essential goods than other countriesB.By having lower opportunity costs for producing certain goodsC.By lowering the trade deficits they have with their neighborsD.By reducing their reliance on foreign trade for essential goods

Consider a Ricardian framework with two countries, A and B, and two products, G1 and G2. When country A opened up to trade, it experienced an increase in nominal wage. We can infer with certainty that Group of answer choicesCountry A has comparative advantage in G2Country A has comparative advantage in G1The world trade relative price is different from country A's autarky relative priceReal wage remained the same in country B

When two countries with different opportunity costs engage in trade based on comparative advantage, the result is:  A. Both countries experiencing increased production and consumption  B. Both countries producing only goods they have an absolute advantage in  C. Both countries experiencing decreased production  D. Both countries producing the same goods