Multiple Choice
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs. It can be deduced that
A) Greece has a comparative advantage in chemicals.
B) Greece has the absolute advantage in both products.
C) Italy has a comparative advantage in chemicals.
D) it is more costly in terms of resources to produce steel in Italy.
Correct Answer:
Verified
Correct Answer:
Verified
Q63: What other economic process needs to accompany
Q64: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the
Q66: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" In the accompanying
Q67: A side benefit of international trade is
Q69: Assume that by devoting all its resources
Q70: The Trade Adjustment Assistance Act of 2002
Q136: Tariffs and quotas are costly to consumers
Q203: Comparative advantage is another name for absolute
Q276: If a nation imposes a tariff on
Q336: The so-called eurozone refers to<br>A) all members