Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, then
A) the United States has a comparative advantage in corn production.
B) Mexico has a comparative advantage in corn production.
C) the United States cannot gain from trade with Mexico.
D) the United States has a comparative advantage in auto production.
A
You might also like to view...
In the above figure, the line represented by the "2" is the
A) average fixed cost. B) average variable cost. C) total cost. D) average total cost.
Explain how the market can reduce the incentive for credit-rating firms to take advantage of conflicts of interest
What will be an ideal response?
Which of the following is provided by Supplemental Security Income (SSI)?
a. Cash support for the disabled and elderly poor b. Debit cards for the poor to purchase food c. Rent assistance for the poor and near-poor d. Food assistance for pregnant women and newborns
At any given moment there is one exchange rate
a. for currencies in the free world. b. between every pair of currencies. c. for all the world's currencies. d. established by the Federal Reserve Board.