Gains from trade can only be achieved

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Reference no: EM131238726

1. Competitive advantage and comparative advantage will differ for China if

A. the Chinese currency? (the Renimbi or? "yuan") is overvalued.

B. true production costs are inaccurately measured due to production externalities such as pollution.

C. None of the above. Competitive advantage and comparative advantage are always the same.

D. Both A and B.

2. Gains from trade can only be achieved? if:

A. a country has an absolute productivity advantage.

B. a? country's economy is based on free enterprise principles.

C. a? country's economy is centrally controlled.

D. a country has a comparative productivity advantage.

E. None of the above.

Reference no: EM131238726

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