Maximum Feasible Hourly Production Rates (in Tons) of EitherWine or Beef Using All Available ResourcesProductArgentinaFranceWine (gallons)3060Beef (pounds)1030Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange
A. is 2.5 gallons of wine for 1 pound of beef, and Argentina imports beef.
B. 0.2 pound of beef for 1 gallon of wine, and Argentina imports wine.
C. 4 gallons of wine for 1 pound of beef, and France imports beef.
D. 8 pounds of beef for 1 gallon of wine, and France imports wine.
Answer: A
You might also like to view...
Can a country have comparative advantage in all products?
What will be an ideal response?
An industry in which an increase in output leads to a reduction in long-run per-unit costs is a(n)
A) increasing-cost industry. B) constant-cost industry. C) break-even cost industry. D) decreasing-cost industry.
In a perfectly contestable market in the long run, each firm
A. produces at the minimum point on its long-run average total cost curve. B. earns a profit below its opportunity cost of capital. C. avoids making capital expenditures. D. All of the responses are correct.
The federal government
A. is the largest taxing entity in the country. B. is only concerned with international issues. C. spends heavily on net interest. D. all of these answer options are correct.