Advanced Placement (AP)

Leroy Barry

8 October, 13:02

Which of the following situations would allow agents to gain from specialization and trade with one

another?

Choose 1 answer:

The terms of trade are between the two agents' opportunity costs.

The agents have the same opportunity costs.

One agent has absolute advantage in both goods.

0

One agent has comparative advantage in both goods.

Either agent has absolute advantage in either of the goods.