Refer to the information provided in Table 33.1 below to answer the question(s) that follow. Table 33.1
Refer to Table 33.1. Mexico has
A. an absolute advantage and a comparative advantage in banana production.
B. a comparative advantage but not an absolute advantage in banana production.
C. a comparative advantage but not an absolute advantage in orange production.
D. an absolute advantage and a comparative advantage in orange production.
Answer: D
You might also like to view...
If the price of a good increases, ________
A) the budget constraint shifts to the right B) the budget constraint shifts to the left C) the consumer surplus increases D) the consumer surplus decreases
What determines the success of a cartel?
What will be an ideal response?
With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
On necessities, more of the incidence of tax is
a. borne by the producer. b. borne by the consumer. c. shared equally between the producer and the consumer. d. None of the above is correct.