Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A) The United States has a comparative advantage in computers.
B) The United States has a comparative advantage in bicycles.
C) Mexico has a comparative advantage in computers.
D) Mexico has a comparative advantage in both goods.
A
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Which of the following is not a problem with poorly defined property rights?
a. Insufficient incentive exists to produce resources that cannot be protected. b. Resources will tend to be underutilized. c. Individuals may be able to use resources without paying for them. d. Little incentive to conserve on the use of poorly defined resources.
The natural rate hypothesis suggests that improvements in technology that occur normally during the course of time will lead the economy to the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false