Multiple Choice
Given the following Ricardo-type table shows the labor input required per unit of output In each of the two industries in each of the two countries:
Which one of the following statements is correct?
A) France's pretrade price ratio is 1 brandy = 2 shirts.
B) The U.S. pretrade price ratio is 1 shirt = 3 brandy.
C) The United States has an absolute advantage in both goods.
D) France will export shirts after trade begins.
Correct Answer:

Verified
Correct Answer:
Verified
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