题目内容
There are two explanations of constant opportunity costs; (1) factors of production are imperfect substitutes for each other; (2) all units of a given factor have different qualities.
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With increasing opportunity costs, a nation totally specializes in the production of the commodity of its comparative advantage; with constant opportunity costs, a nation partially specializes in the production of the commodity of its comparative advantage.
A nation's trade triangle denotes its exports, imports, and terms of trade.
International trade leads to increased welfare if a nation can achieve a post-trade consumption point lying inside of its production-possibilities schedule.
If the U.S. post-trade consumption point lies along its production possibilities schedule, the United States achieves a higher level of welfare with trade than without trade.
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