Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, ________ will gain from that trade because ________:

Suppose that the United States and Cuba decide to open up trade. If each country specializes in the good in which it has a comparative advantage, ________ will gain from that trade because ________:




A) both countries; consumption possibilities in both Cuba and the United States will lie outside their PPFs
B) only Cuba; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change
C) neither country; their consumption possibilities will not change
D) only the United States; consumption possibilities in Cuba will lie outside its PPF and U.S. consumption possibilities will not change


Answer: A


Learn More :