Country A can produce both wheat and oranges using fewer resources than country B. Which of the following statements is true?
A. Country A has a comparative advantage in producing both goods.
B. Country A has an absolute advantage in producing both goods.
C. Country B has no comparative advantage.
D. Country B must have an absolute advantage in producing one of the goods.
B. Country A has an absolute advantage in producing both goods.
You might also like to view...
Estate and gift taxes account for a very small portion of total tax revenues collected by the federal government because taxes are levied only on large estates
Indicate whether the statement is true or false
A rise in price will always result in an increase in the total amount that consumers spend on a product.
Answer the following statement true (T) or false (F)
A system of accounts that measures the transactions of goods, services, income, and financial assets between domestic households, businesses, and governments and residents of the rest of the world during a specific time period is the
A) capital account. B) current account. C) balance of payments. D) balance of trade.
Over the last 50 years, the rich have:
A. become relatively poorer, and the poor have become relatively poorer, too. B. become richer, and the poor have become poorer. C. become richer, and the poor have become richer, too. D. become relatively poorer, and the poor have become relatively richer.