题目内容
In autarky equilibrium, a nation realizes the lowest possible level of satisfaction given the constraint of its production possibilities schedule.
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A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky.
A nation realizes maximun gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.
The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.
BecausetheRicardiantheoryofcomparativeadvantagewasbasedonlyonanation'sdemandconditions,itcouldnotfullyexplainthedistributionofthegainsfromtradeamongtradingpartners.
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