Multiple Choice
If country A has a lower opportunity cost of producing cars than country B, then country A has
A) a comparative advantage in car production and country B has an absolute advantage in car production.
B) an absolute advantage in car production.
C) a comparative advantage in car production.
D) an absolute and a comparative advantage in car production.
E) no reason to trade with country B.
Correct Answer:
Verified
Correct Answer:
Verified
Q157: Exhibit 29-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 29-2
Q158: The principle of comparative advantage implies that
Q159: Which of the following statements about trade
Q160: Explain the connection between opportunity costs of
Q161: An area that has no trade barriers
Q163: Consider an industry in which, for each
Q164: Production that uses a relatively low level
Q165: The effect the Smoot-Hawley tariff had on
Q166: Exhibit 29-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 29-1
Q167: Exhibit 29-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 29-2