Use the figure below to answer the following question.At equilibrium, economic surplus is

When compared with China, the growth of clothing exports originating in Bangladesh is the result of

A) the comparative advantage that Bangladesh has in the production of clothing for export. B) the absolute advantage that China has in the production of clothing for export. C) the absolute advantage that Bangladesh has in the production of clothing for export. D) the comparative and absolute advantage that China has in the production of clothing for export. E) the comparative and absolute advantage that Bangladesh has in the production of clothing for export.

Other things equal, the higher the deviations from purchasing power, the lesser will be the arbitrage opportunities

a. True b. False Indicate whether the statement is true or false