Prior to international trade, the price of good X is lower in country A than in country B. This means that we know that
A) country B has an absolute advantage in the production of product X.
B) country B has a comparative advantage in the production of product X.
C) country A has an absolute advantage in the production of product X.
D) country A has a comparative advantage in the production of product X.
D
You might also like to view...
Classical macroeconomic theorists believed that if the economy was in a slump, the government should ________.
A. increase spending B. maintain a balanced budget C. lower taxes D. print money
The marginal cost curve intersects the average total cost curve at the firm's most efficient point of production
a. True b. False Indicate whether the statement is true or false
Computing capacity has approximately:
A. tripled every three years since the invention of computers. B. doubled every five years since the invention of computers. C. tripled every two years since the invention of computers. D. doubled every two years since the invention of computers.
Select the graph below that best shows the change in the market specified in the following situation: In the market for Florida oranges, when a major frost damages the orange crop in California
Assume that the graphs show a competitive market for the product stated in the question.
A. Graph A
B. Graph B
C. Graph C
D. Graph D