Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
B) Labor costs are higher for surfboard producers in New Zealand than in Australia.
C) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
D) Australia also has an absolute advantage in producing surfboards relative to New Zealand.
C
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Setting a price support in the market for sugar beets above equilibrium price ________ the quantity produced and ________ the quantity bought by consumers
A) decreases; decreases B) increases; decreases C) decreases; increases D) increases; increases E) does not change; increases
Trade deflection is an act that
A) decreases the amount of international trade in the world. B) increases the amount of international trade in the world. C) has no impact on the amount of international trade in the world. D) is illegal among all countries in the world.
Which of the following policy actions by the Fed would cause the money supply to decrease?
a. An open-market purchase of government securities. b. A decrease in required reserve ratios. c. An increase in the discount rate. d. A decrease in the discount rate.
If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,
a. the country will be an exporter of the good. b. the country will be an importer of the good. c. the country will be neither an exporter nor an importer of the good. d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.