Multiple Choice
Suppose that,given the same number of workers,the United States can produce two times as many TVs or 20 times as many potatoes as Chile.Which of the following statements is true?
A) Chile should trade with the United States for potatoes because the United States has an absolute advantage in the production of potatoes.
B) Chile should trade with the United States for TVs because the United States has an absolute advantage in the production of potatoes.
C) The United States can benefit from trading TVs but not potatoes with Chile.
D) None of these statements is necessarily true.
Correct Answer:

Verified
Correct Answer:
Verified
Q80: Tom and Jerry have two tasks to
Q81: Suppose an American worker can make 50
Q82: Tom and Jerry have two tasks to
Q83: Suppose that a worker in Country A
Q84: Which of the following statements about absolute
Q86: Economic theory states that losing comparative advantage
Q87: If the opportunity cost of producing corn
Q88: If society were to experience an increase
Q89: If Spain is capable of producing either
Q90: Suppose an American worker can make 50