Assume that Australia has a comparative advantage in producing surfboards and New Zealand imports surfboards from Australia. We can conclude that
A) Labor costs are higher for surfboard producers in New Zealand than in Australia.
B) Australia also has an absolute advantage in producing surfboards relative to New Zealand.
C) Australia has a lower opportunity cost of producing surfboards relative to New Zealand.
D) New Zealand has an absolute disadvantage in producing surfboards relative to Australia.
C
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Countervailing duties are:
a. applied to dumped imports. b. applied to subsidized imports. c. another name for safeguard duties. d. not allowed under terms of the GATT.
Using the above figure, suppose there is a decrease in the number of suppliers. Then
A) the equilibrium price will decrease below $25 per dozen roses. B) we cannot predict what will happen to equilibrium quantity. C) the equilibrium quantity will decrease below 10 dozen roses. D) both the equilibrium price and quantity will increase.