Indicate weather each of the following statements is true or false.
1. There can be no gains from trade between two countries if one of them has an absolute advantage in the production of all goods.
2. Comparative advantage determines the gains from specialization and trade.
3. If a certain trade is good for one country, it can't be good for the other country.
4. Two individuals can benefit from specialization and trade if they agree upon a price that lies between their opportunity costs of producing the good.
5. When a country opens to trade, people working in industries producing goods that the country exports are harmed by the trade.

1. False

2. True

3. False

4. True

5. False

Explanation:

- This is because gains from trade come from specialization in one comparative advantage and self sufficiency can lead poor management of natural resources.

- gain from trade are only based on comparative advantage.

- because trades can benefit both parties when production is based on comparative advantage.

- it gives both parties a chance to consume at points outside their production capabilities.

- because countries open to trade tend to grow faster, innovate to improve productivity while providing more opportunities for the populace.

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself