Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:
A. has a comparative advantage in producing kiwis.
B. does not have a comparative advantage in producing either good.
C. has a comparative advantage in producing apples.
D. has a comparative advantage in producing both goods.
Answer: A
You might also like to view...
Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition. The most common reason for this is
A) firms in these markets make high profits. B) there are high barriers to entering these markets. C) firms in these markets sell identical products. D) firms in these markets do not sell identical products.
A reserve requirement of 20 percent implies a potential money deposit multiplier of
a. 4. b. 5. c. 20. d. 25.
Which of the following is an accurate statement about a theory?
a. It is accepted as being true for all time. b. It has a broader scope than a hypothesis. c. It has little relation with the real world. d. It is tentatively accepted as being accurate.
Hands off leadership
a. situational leadership b. participative ledership c. autocratic leadership d. laissez faire leadership