Multiple Choice
Suppose the opportunity cost is a constant 500 TV sets for 1 car in Canada and 1,000 TV sets for 8 cars in Mexico.Then,if both countries specialize in accordance with their comparative advantage,the production of 1,000 extra TV sets in one country and 1,000 fewer TV sets in the other would imply that the world as a whole can have
A) 2 more cars
B) 6 more cars
C) 8 more cars
D) 125 more cars
E) 500 more cars
Correct Answer:
Verified
Correct Answer:
Verified
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