Suppose Ireland exports beer to China and imports pineapples from the United States. This situation suggests that
a. Ireland has a comparative advantage relative to the United States in producing pineapples, and China has a comparative advantage relative to Ireland in producing beer.
b. Ireland has a comparative advantage relative to China in producing beer, and the United States has a comparative advantage relative to Ireland in producing pineapples.
c. Ireland has an absolute advantage relative to the United States in producing pineapples, and China has an absolute advantage relative to Ireland in producing beer.
d. Ireland has an absolute advantage relative to China in producing beer, and the United States has an absolute advantage relative to Ireland in producing pineapples.
b
You might also like to view...
If the government offers to reduce your property taxes by 10 percent if you install solar heating for your home, this would be an example of
A) police power. B) incentives. C) disincentives. D) ceteris paribus.
Centralizing decisions is efficient if people at lower levels of an organization have knowledge to which those at higher levels can add little
Indicate whether the statement is true or false
An increase in supply, holding demand constant, will cause:
a. Higher prices and a larger quantity sold b. Lower prices and a larger quantity sold c. Higher prices and a smaller quantity sold d. Lower prices and a smaller quantity sold
Wage inequality has been on the rise in virtually all high-income industrial economies since the 1970s. The causes are probably numerous, but the leading explanation for the greatest share of the increase in inequality is
A) the growth of trade with developing countries. B) the growth of trade with other high income industrial countries. C) technological change which increased the relative demand for skilled workers. D) technological change which increased the relative demand for unskilled workers.