The classical theory predict that

Question

a. countries will completely specialize in the produciton of export goods.

b. considerable trade will occur between countries with difefferent levels of technology.

c. samll countries could ontain all of the gains from trade when trade with large countries.

d. All of the above.

Answer 1

Which classical theory? Keynesian, or pre-Keynesian, or the Austrian School ala von Mises? Please be more specific next time.