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The Country of Rhozundia Is Blessed with Rich Copper Deposits

Question 10

Multiple Choice

The Country of Rhozundia is blessed with rich copper deposits. The cost of copper produced (relative to the cost of widgets produced) is therefore very low. From this information we know that


A) Rhozundia has a comparative advantage in copper.
B) Rhozundia should import copper and export widgets.
C) Rhozundia should export both widgets and copper.
D) Rhozundia should invest in more widget production.
E) Rhozundia may or may not have a comparative advantage in copper.

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