Macland can produce 150 sweaters or 75 bushels of rice. Microland can produce 50 sweaters or 50 bushels of rice. What country has a comparative advantage in rice?
a. Macland and Microland can produce rice at the same opportunity cost.
b. Macland can produce rice at a lower opportunity cost.
c. Microland can produce rice at a lower opportunity cost.
d. Microland can produce rice at a higher opportunity cost
c. Microland can produce rice at a lower opportunity cost.
You might also like to view...
The current account balance is defined as
A) the value of exports - the value of imports. B) the amount of exported capital assets + net interest income. C) the value of exports - the value of imports + net interest income + net transfers. D) the difference between the import and export of official reserves.
When two nations are interconnected by means of payment systems, trading markets or financial markets, they are called
A) structurally interdependent. B) externalities. C) a monetary union. D) coordinated.
Refer to the accompanying figure. As the production of pizza increases, the opportunity cost of producing pizza:
A. decreases. B. increases. C. becomes negative. D. doesn't change.
Graphically, what does the marginal product curve for a labor input look like? Explain in words
What will be an ideal response?