If Country A can produce a unit of good 1 at a lower opportunity cost than can Country B, it is correct to state that Country A
A. has a comparative advantage in producing good 1.
B. will import good 1 from country Y.
C. has an absolute advantage in producing good 1.
D. will not produce good 1.
Answer: A
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Which of the following is NOT true of the European Union
A. The EU promoted freer trade between member countries B. The EU allows members to benefit from economies of scale in selling to a larger market C. The EU provides a common currency for a subset of its members D. The EU was established in 1999
Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the
a. marginal utility of another haircut would be zero or negative b. marginal utility of another haircut would increase c. marginal utility of another haircut would be zero or positive d. total utility of both haircuts would be zero or negative e. total utility of both haircuts would be higher than just one haircut