Refer to Mexico and Japan. Which of the following statements is true.
a. Mexico has a comparative advantage in production of food.
b. Japan has an absolute advantage in production of food.
c. Mexico has a comparative advantage in production of cloth.
d. Japan has an absolute advantage in production of Cloth.
a. Mexico has a comparative advantage in production of food.
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Referring to Figure 19.2, the effect of a decrease in Japanese prices is represented by a movement from point
A) d to a. B) d to c. C) c to d. D) c to b.
Refer to the scenario above. Pat should submit a bid of ________
A) $200 B) $180 C) $45 D) $135
The income elasticity of demand for restaurant meals is 1.61. So
A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent. B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent. C) restaurant meals are an income elastic normal good. D) Both answers B and C are correct.
How do central banks, like the U.S. Federal Reserve, contribute to the welfare of a society?
What will be an ideal response?