Multiple Choice
Suppose Paraguay can produce 12 wheat or 3 corn.Suppose Bolivia can produce 4 wheat or 2 corn.Suppose opportunity costs are constant.Given these production possibilities,
A) Paraguay has a comparative advantage in wheat.
B) Paraguay has a comparative advantage in corn.
C) Paraguay has a comparative advantage in both goods.
D) Paraguay has an absolute advantage in neither good.
Correct Answer:
Verified
Correct Answer:
Verified
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