Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests
a. Russia has a comparative advantage over Brazil in producing coffee, and Ireland has a comparative advantage over Russia in producing sunflower seeds.
b. Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee.
c. Russia has an absolute advantage over Ireland in producing sunflower seeds, and Brazil has an absolute advantage over Russia in producing coffee.
d. Russia has an absolute advantage over Brazil in producing coffee, and Ireland has an absolute advantage over Russia in producing sunflower seeds.
b
You might also like to view...
Higher interest rates increase both consumption and investment spending
Indicate whether the statement is true or false
In January 2013, the world's cheapest Big Macs were sold in
A) the Philippines. B) Russia. C) China. D) Malysia. E) the Czech Republic.
Which of the following statements is TRUE?
A) All nations that belong to the International Monetary Fund have equal voting power. B) The voting power of a nation in the International Monetary Fund is determined by its quota subscription. C) The voting power of a nation in the International Monetary Fund is called special drawing rights. D) The voting procedure in the International Fund is determined by the World Bank.
A negative income tax program is designed to assist the unemployed
Indicate whether the statement is true or false