Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Pick the true statement:
A) The opportunity cost of 1 unit of beef in Canada is 4 units of oranges.
B) The opportunity cost of 1 unit of oranges in the U.S. is 4 units of beef.
C) Canada is has a comparative advantage in oranges.
D) The U.S. has a comparative advantage in beef.
E) None of the above is true.
E
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The table above shows Mary's utility from chips and soda. The table shows that Mary has diminishing marginal utility for
A) both chips and soda. B) neither chips nor soda. C) soda, but not chips. D) chips, but not soda.
In a democratic society, the preferences of __________ will often dominate decisions made by direct majority voting
a. elected government representatives b. special interest groups c. rent seekers d. senior citizens e. the median voter
A toll on a congested road is in essence
a. an interstate highway tax. b. a Department of Motor Vehicles tax. c. a gasoline tax. d. a corrective tax.
According to Baumol and Blinder, from the demand side a decrease in the price level causes aggregate expenditures to
A. fall, resulting in a lower level of equilibrium income. B. fall, resulting in a higher level of equilibrium income. C. rise, resulting in a higher level of equilibrium income. D. rise, resulting in a lower level of equilibrium income.