Multiple Choice
Table 1 shows the units of output a worker can produce per month in Australia and Korea. ?
?
Refer to table 1. Which of the following statements about comparative advantage is true?
A) Australia has a comparative advantage in the production of both food and electronics.
B) Korea has a comparative advantage in the production of both food and electronics.
C) Australia has a comparative advantage in the production of food while Korea has a comparative advantage in the production of electronics.
D) Korea has a comparative advantage in the production of food while Australia has a comparative advantage in the production of electronics.
E) Neither country has a comparative advantage.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Tariffs and quotas cause deadweight losses because
Q14: According to the principle of comparative advantage,
Q16: If a nation has an absolute advantage
Q18: If an economy is operating on its
Q19: Opportunity costs change as an economy moves
Q21: When a country allows trade and exports
Q22: Which of the following will not shift
Q80: Draw a production possibilities frontier showing increasing
Q99: Explain the difference between absolute advantage and
Q183: Gary and Diane must prepare a presentation