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

Verified
Correct Answer:
Verified
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