11.) Gains of trade are possible for two countries if they have: a.) different opportunity costs....

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Question

11.) Gains of trade are possible for two countries if they have: a.) different opportunity costs....

11.) Gains of trade are possible for two countries if they have:

a.) different opportunity costs.

b.) equal opportunity costs.

c.) different political systems.

d.) identical political systems.

business economics

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Answer 1

Answer #1

Whenever two countries do trade, they all look their mutual benefit and growth as well

Political system can be different of two different countries and do not particularly determine the pattern of trade .

But opportunity cost play a important role in the pattern of trade .

Ooportunity cost is related with the comparative advantage of a country.

If a country is having country comparative advantage over other country then it can export goods to the other

Comparative advantage means the country can produce at lower opportunity cost so that both countries can benefit from each other .

Hence the correct answer is option A

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Answer 2

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