If France has a labor force of 30,000 hours of labor, then after trade begins it will produce a. 2000 units of grapes. 6000 units of textiles. France will gain from trade so long as world price of grapes measured in terms of textiles is below a. 15. A should specialize in the good of its least absolute disadvantage. A should specialize in the good of its most absolute advantage.
Comparative advantage is determined by the relative levels of autarky prices.
A country must have absolute advantage in a good in order to have comparative advantage in that good. A country must have comparative advantage in a good in order to have absolute advantage in that good. All of the above. Answer questions 14-18 based on the following diagram of a country in international trade equilibrium 14. If two nations have linear production possibilities frontiers, a. then their consumption possibilities frontiers must lie inside their production possibilities frontiers.