Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. From the data above, the United States
a. has an absolute advantage over Great Britain in the production of textiles.
b. has an absolute advantage over Great Britain in the production of wheat.
c. has a comparative advantage in the production of textiles
d. should export textiles to Great Britain.
b
You might also like to view...
Refer to Figure 9-5. The loss in domestic consumer surplus as a result of the tariff is equal to
A) $5 million. B) $19.875 million. C) $24.875 million. D) $31.125 million.
Refer to the scenario above. If the local government has a progressive tax system, which family pays the largest amount as tax?
A) The first household B) The second household C) The third household D) The fourth household
The real-world money multiplier is greater than the simple money multiplier (1/RR)
Indicate whether the statement is true or false
Which of the following statements about public goods is not true?
A. They bestow collective benefits on members of society. B. They will be under supplied by the private sector. C. They are only produced by government agencies. D. They are non-excludable since those who do not pay for them cannot be excluded from enjoying them.