Multiple Choice
Suppose the United States and Japan are the only two countries and each can produce two goods--wheat and cars.If the United States has an absolute advantage in wheat and Japan has an absolute advantage in cars,we know that
A) there will be no trade because neither country has a comparative advantage in either good.
B) one of the countries will have a comparative advantage in wheat,but we can't tell which one without more information.
C) the United States must have a comparative advantage in cars and Japan in wheat.
D) the United States has a comparative advantage in wheat and Japan has a comparative advantage in cars.
Correct Answer:

Verified
Correct Answer:
Verified
Q5: Suppose Mexico has a comparative advantage relative
Q6: Given two economic systems,A and B,if economy
Q7: The free trade agreement between the United
Q9: If protective import-restricting tariffs are imposed by
Q11: In France 1 unit of labour can
Q12: Absolute advantage is defined as<br>A)the ability to
Q13: Tariffs to limit imports to "protect Canadian
Q76: In the long run, imports will most
Q99: The General Agreement on Tariffs and Trade
Q120: For the infant-industry argument for tariffs to