Country A can produce 50 units of beer or 80 units of pizzas. Country B can produce 100 units of beer or 100 units of pizzas. Which of the following statements is true?
A. Country B has an absolute advantage in both products.
B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer.
C. Country B has a comparative advantage in pizza and country A has a comparative advantage in beer.
D. A and B.
Ans: D. A and B.
You might also like to view...
The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average variable cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $20 E) $0.25
What do we call financial institutions through which savers can indirectly provide funds to borrowers?
a. stock markets b. financial institutions c. financial markets d. financial intermediaries
In professional baseball, some players earn over $20 million per year, while the average salary is about $4 million per year. The most likely explanation for this is that:
A. the market for baseball players is a winner-take-all market. B. racial discrimination. C. the best players are 5 times better than the average player. D. owners are overspending on players' salaries.
All of the following are factors that will change demand and shift the demand curve, EXCEPT Question 20 options:
A. the price of the good itself. B. preferences. C. income. D. the prices of related goods.