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If Resources and Goods Are Free to Move Across States

Question 65

Multiple Choice

If resources and goods are free to move across states, if Oregon producers choose to specialize in producing honey and California producers choose to specialize in growing almonds, then we could reasonable conclude that:


A) California has a comparative advantage in producing almonds.
B) Oregon has a comparative advantage in producing honey.
C) the opportunity cost of growing almonds is lower in California than in Oregon.
D) the opportunity cost of producing honey is lower in Oregon than in California.
E) all of the above are true.

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