Refer to Table 16.1. Use the following statements to answer this question
I. Mexico has an absolute advantage in the production of tomatoes and beer.
II. Mexico has a comparative advantage in the production of tomatoes.
A) Both I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) Both I and II are false.
A
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For a perfectly competitive firm, the market price of a good is
A) a given which the firm cannot change. B) determined by the firm in order to maximize its profit. C) equal to the firm's marginal revenue. D) Answers A and B are correct. E) Answers A and C are correct.
The concepts of specialization and gains from trade can be applied to:
A. international trade. B. why globalization has expanded recently. C. consumer decisions. D. household decisions.
As the price of a good increases:
a. that good will yield less satisfaction per dollar than before. b. consumers will have more real income to spend on other goods. c. the quantity demanded of that good will also increase. d. the utility-maximizing quantity of that good willl not change. e. consumers will buy the good and substitute away from other goods.
A futures contract is a contract in which the seller agrees to provide a given good to the buyer on a predetermined future date at an agreed-upon price
Indicate whether the statement is true or false