The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade? Vibranium (tons) Gold (tons) Wakanda 8 tons 2 tons Zamunda 2 tons 1 ton Group of answer choices Trade can allow each country to increase consumption beyond its production possibilities frontier. Trade can allow each country to shift its production possibilities frontier outward to higher levels of production. Trade can allow each country to become less vulnerable to the actions of the other country. All of these answers are correct.
The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade? Vibranium (tons) Gold (tons) Wakanda 8 tons 2 tons Zamunda 2 tons 1 ton Group of answer choices Trade can allow each country to increase consumption beyond its production possibilities frontier. Trade can allow each country to shift its production possibilities frontier outward to higher levels of production. Trade can allow each country to become less vulnerable to the actions of the other country. All of these answers are correct.
Chapter28: International Trade And Finance
Section: Chapter Questions
Problem 1SQP
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Question
The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of
|
|
Vibranium (tons) |
Gold (tons) |
| Wakanda |
8 tons |
2 tons |
|
Zamunda |
2 tons |
1 ton |
Group of answer choices
Trade can allow each country to increase consumption beyond its
Trade can allow each country to shift its production possibilities frontier outward to higher levels of production.
Trade can allow each country to become less vulnerable to the actions of the other country.
All of these answers are correct.
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