If it takes one country one unit of labor to produce either a computer or a TV, but it takes the other country two units of labor to produce a computer and only one to produce a TV, then the first country has
A. both a comparative and absolute advantage in both goods.
B. an absolute advantage in both goods.
C. a comparative advantage in both goods.
D. an absolute and comparative advantage in production of computers.
Answer: D
You might also like to view...
The consumption function shows
A) a positive relationship between an individual's stock of wealth and his level of planned consumption. B) a negative relationship between planned consumption and aggregate saving. C) a positive relationship between disposable income and planned consumption. D) a negative relationship between disposable income and planned consumption.
Assume that the M1 multiplier is 3 and the Federal Reserve sells $100 million worth of government securities. Bank reserves will
A) rise by $100 million. B) fall by $100 million. C) fall by $300 million. D) fall by $33.33 million.