Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

In comparative advantage theory, why does trade bring benefits between two countries?

  • AEach country has different goods to sell and different tastes.
  • BEach country has different opportunity costs of production.
  • COne country has the absolute advantage in producing both goods.
  • DThe prices of goods are different between each country.

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