The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The United Kingdom has a comparative advantage in the production of ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. only corn.
B. neither umbrellas nor corn.
C. only umbrellas.
D. both goods.
Answer: A
You might also like to view...
Aggregate demand is the sum of total domestic spending by the private sector.
Answer the following statement true (T) or false (F)
According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:
A. velocity. B. unemployment. C. the price level. D. real GDP.
If the government imposes a price ceiling below the monopolist's average cost curve, then in the long run the regulation makes:
A. consumers worse off. B. consumers better off. C. the monopolist better off. D. None of the statements is correct.
In Figure 1.2, which labeled points are unattainable? 
A. only A B. only B and C C. only D D. A, B, and C