Using the data in the above table, and assuming constant opportunity costs, it is likely that
A) the United States will import food.
B) Mexico will export cloth.
C) the United States will export both cloth and food.
D) Mexico will export both cloth and food.
A
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Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,
A) Cindy has a comparative advantage at producing tacos. B) Scott has a comparative advantage at producing tacos. C) Cindy and Scott have the same comparative advantage in producing tacos. D) neither Cindy nor Scott has a comparative advantage in producing tacos. E) Cindy and Scott have the same comparative advantage in producing pizzas.
When there is an inflationary gap: a. Employment exceeds full employment
b. Employment equals full employment. c. Employment is less than full employment. d. Any of the above is possible.