The opportunity cost of producing one ton of wheat for Country Gamma is 4 tons of corn. The opportunity cost of producing one ton of wheat for Country Beta is 8 tons of corn. Which country has the comparative advantage in the production of wheat?
A) Gamma
B) Beta
C) Neither country has a comparative advantage.
D) Both countries have the comparative advantage.
A
Economics
You might also like to view...
Refer to Table 23-11. Using the table above, calculate the unplanned change in inventories for each level of GDP, and explain what will happen to GDP
What will be an ideal response?
Economics
The ________ interest rate is adjusted for expected changes in the price level
A) ex ante real B) ex post real C) ex post nominal D) ex ante nominal
Economics