The nation of Farmland forbids international trade. In Farmland, you can exchange 1 pound of beef for 2 pounds of pepper. In other countries, you can exchange 1 pound of beef for 4 pounds of pepper. These facts indicate that
a. Farmland has a comparative advantage, relative to other countries, in producing beef.
b. other countries have an absolute advantage, relative to Farmland, in producing beef.
c. the price of beef in Farmland exceeds the world price of beef.
d. if Farmland were to allow trade, it would export pepper.
a
Economics
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__________________ - Every pareto optimal point on the contract curve is a feasible equilibrium
Fill in the blank(s) with the appropriate word(s).
Economics
A more elastic demand for a good would generally result from
a. an increase in the supply of that good b. an increase in the number of substitutes for that good c. a decrease in the number of substitutes for that good d. smaller consumer incomes e. a reduction in the number of consumers
Economics