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MMLU-Pro / 7130 / If every country in the world has the exact same opportunity costs, so that no…

Problem

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question

If every country in the world has the exact same opportunity costs, so that no nation has a comparative advantage in any line of production, could there still be a basis for trade?

category

economics

options

  1. Trade would cease without a comparative advantage
  2. Trade is solely based on comparative advantage
  3. Differences in technology and production methods could create opportunities for trade, even if the opportunity costs are the same.
  4. Without comparative advantage, it is impossible for trade to occur
  5. Differences in taste, leading to exchange between nations, would stimulate trade regardless of the absence of comparative advantages.

src

stemez-Economics

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