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-Use the Above Table

Question 171

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  -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 7 gallons of wine for 1 pound of beef, and Argentina imports beef. B) 0.25 gallons of wine for 1 pound of beef, and France imports beef. C) 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine. D) 0.4 pounds of beef for 1 gallon of wine, and France imports wine.
-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 7 gallons of wine for 1 pound of beef, and Argentina imports beef.
B) 0.25 gallons of wine for 1 pound of beef, and France imports beef.
C) 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine.
D) 0.4 pounds of beef for 1 gallon of wine, and France imports wine.

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