The United States is trading salmon to Peru in exchange for anchovies. If these nations are trading based upon relative opportunity costs, what must be the case?
Trading nations specialize in the good in which they have lower opportunity costs. A nation trades this good to the other in exchange for the good for which it does not have comparative advantage.
269 MCQ for effective preparation of the test of Microeconomics of Economics section.
Read the MCQ statement: The United States is trading salmon to Peru in exchange for anchovies. If these nations are trading based upon relative opportunity costs, what must be the case? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 6-4016.