Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities
A) Blue Violet has a comparative advantage in teapots.
B) Sweet Pansy has a comparative advantage in teapots.
C) Both have a comparative advantage in teapots.
D) Sweet Pansy has an absolute advantage in teapots.
A
You might also like to view...
A bank will consider a car loan to a customer ________ and a customer's checking account to be ________
A) a liability; a liability B) an asset; net worth C) a liability; an asset D) an asset; a liability E) an asset; an asset
If by purchasing a little more milk and a little less ice cream you could increase your total utility,
a. the MU of milk must be greater than that of ice cream b. the MU of ice cream must be greater than that of milk c. the MU/P of milk must be greater than that of ice cream d. milk must be cheaper than ice cream e. the MU of milk will increase