In Table 17.2, the United States has 
A. an absolute advantage but not a comparative advantage in coffee.
B. an absolute and comparative advantage in both goods.
C. an absolute advantage but not a comparative advantage in apples.
D. an absolute and comparative advantage in coffee.
Answer: A
You might also like to view...
Refer to Figure 6-6. As price falls from PA to PB, the quantity demanded increases most along D1; therefore
A) D1 is more elastic than D2 or D3 B) D1 is more inelastic than D2 or D3. C) D1 is elastic at PA but inelastic at PB. D) D1 is unit elastic.
If fewer U.S. dollars are needed to buy a Swiss franc, then
a. Swiss goods become relatively more expensive to U.S. residents b. U.S. residents buy fewer francs c. U.S. goods become relatively cheaper to Swiss residents d. U.S. residents buy more Swiss goods e. U.S. residents supply more francs
When estimating GDP, changes in the level of inventory are calculated because:
a. it indicates the level of employment in the economy. b. it provides information about a firm's expectations. c. it is a good indicator of the competitiveness of the economy. d. it shows the level of business spending by firms. e. it determines the value of goods produced in a year but not sold in that year.
Income gains in the poorest DVCs may increase population growth initially, at least for a while, due to the following reasons, except:
A. Declining death rates B. Increasing birth rates C. Reduced infant mortality D. Decreasing life expectancy