Multiple Choice
If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then
A) Country A would like to trade with B, but B cannot gain by trading with A.
B) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats.
C) Country A has a comparative advantage over Country B in the production of planes.
D) the two countries have no incentive to trade with one another.
E) Country B has a comparative advantage over Country A in the production of planes.
Correct Answer:

Verified
Correct Answer:
Verified
Q30: A production possibilities frontier shows<br>A) that if
Q31: Increasing opportunity cost exists<br>A) in the real
Q32: Scott and Cindy both produce only pizza
Q33: When a production possibilities frontier is bowed
Q34: Hank requires 1 hour to cut the
Q36: In order for Ireland to grow more
Q37: To increase its economic growth, a nation
Q38: Rika's opportunity cost of producing 100 t-shirts
Q39: As we move along the production possibilities
Q40: Comparative advantage is directly related to which