Multiple Choice
-Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange
A) is 2.5 gallons of wine for 1 pound of beef, and Argentina imports beef.
B) 4 gallons of wine for 1 pound of beef, and France imports beef.
C) 0.2 pound of beef for 1 gallon of wine, and Argentina imports wine.
D) 8 pounds of beef for 1 gallon of wine, and France imports wine.
Correct Answer:

Verified
Correct Answer:
Verified
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