Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some goods. a) trueb) false

True

Explanation:

the country with the lower opportunity cost in producing a good is more efficient in production and should specialise in production of that good. While the country with the higher opportunity cost is inefficient in the production of the good and should import from the country with the lower opportunity cost.

Let's illustrate with an example

Scenario A

Country X's opportunity cost in the production of good A = 12 units of B

Country Y's opportunity cost in the production of good A = 2 units of B

Country Y is more efficient and should specialise in the production of good A

Scenario B

Country X's opportunity cost in the production of good A = 12 units of B

Country Y's opportunity cost in the production of good A = 12 units of B

Both countries have the same opportunity cost, so, we can't decide which country should specialise

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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