

MCQOPTIONS
Saved Bookmarks
1. |
By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ? |
A. | The prices of trade goods to be lower than when there are no transportation costs |
B. | specialization to stop when the production costs of the trading partners equalize |
C. | The volume of trade to be less than when there are no transportation costs |
D. | The gains from trade to be greater than when there are no transportation costs |
Answer» D. The gains from trade to be greater than when there are no transportation costs | |