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True or False
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1.
If a nation has an absolute advantage in the production of a good, it necessarily has a comparative advantage in the production of the same good.
A)TRUE
B)FALSE
2.
In a two-country, two-good model, a production-possibility curve is insufficient to predict the amount of the two goods that will be traded.
A)TRUE
B)FALSE
3.
The theory of comparative advantage is attributed to Adam Smith.
A)TRUE
B)FALSE
4.
If the opportunity cost of producing one loaf of bread in France is 4 bottles of wine and the opportunity cost of producing one bottle of wine in England is one-third loaf of bread, France has a comparative advantage in the production of bread.
A)TRUE
B)FALSE
5.
Neo-mercantilists depict international trade as a positive-sum activity.
A)TRUE
B)FALSE





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