Solved

Refer to the Information Provided in Figure 20

Question 177

Multiple Choice

Refer to the information provided in Figure 20.1 below to answer the question(s) that follow. Refer to the information provided in Figure 20.1 below to answer the question(s)  that follow.   Figure 20.1 -Refer to Figure 20.1. Which of the following statements is true? A)  Only Canada can benefit from trade because the United States has an absolute advantage in the production of both soybeans and alfalfa. B)  Trade will benefit both countries because the United States has a comparative advantage in the production of soybeans and Canada has a comparative advantage in the production of alfalfa. C)  Trade will benefit both countries because the United States has a comparative advantage in the production of alfalfa and Canada has a comparative advantage in the production of soybeans. D)  Trade will benefit neither country because the United States has an absolute advantage in the production of both soybeans and alfalfa, but Canada has a comparative advantage in the production of both soybeans and alfalfa. Figure 20.1
-Refer to Figure 20.1. Which of the following statements is true?


A) Only Canada can benefit from trade because the United States has an absolute advantage in the production of both soybeans and alfalfa.
B) Trade will benefit both countries because the United States has a comparative advantage in the production of soybeans and Canada has a comparative advantage in the production of alfalfa.
C) Trade will benefit both countries because the United States has a comparative advantage in the production of alfalfa and Canada has a comparative advantage in the production of soybeans.
D) Trade will benefit neither country because the United States has an absolute advantage in the production of both soybeans and alfalfa, but Canada has a comparative advantage in the production of both soybeans and alfalfa.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions