If the United States could produce 1 ton of potatoes or 1 ton of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 tons of wheat per worker per year, there can be mutual gains from trade if:
a. the United States specializes in potatoes because of its comparative advantage in producing potatoes.
b. the United States specializes in wheat because of its absolute

advantage in producing wheat.
c. the United States specializes in wheat because of its comparative advantage in producing wheat.
d. there can be no mutual gains from trade.

c

Economics

You might also like to view...

To an economist, a free rider is a person who

A) uses private goods without paying for them. B) benefits from consuming public goods without paying for them. C) consumes demerit goods. D) uses the public transportation system without paying for it.

Economics

The monopoly’s ability to restrict output results in lower profits than other types of firms.

Answer the following statement true (T) or false (F)

Economics