Identify each statement as true or false.
a. When two countries choose to partake in international trade, it is a mutually beneficial activity for both countries.
1. True
2. False
b. Wealthier countries always benefit more from international trade than poorer countries.
1. True
2. False
c. Countries trade for goods in which they do not have a comparative advantage, and therefore, would never trade with nations that have similar resource endowments.
1. True
2. False
d. Through specialization and trade, it is possible for a country to consume a combination of goods that is beyond its original production possibilities frontier.
1. True
2. False