Q1. Trade between two countries can be useful if cost ratios of goods are: A. Undetermined B. Decreasing C. Equal D. Different Answer: D
If there is cost ratio for commodities is different for both countries then one of them will have specialization in the production of that commodity and hence, the trade between the two countries can be useful.
If there is cost ratio for commodities is different for both countries then one of them will have specialization in the production of that commodity and hence, the trade between the two countries can be useful.
