Multiple Choice
The nation of Isolani forbids international trade.In Isolani,you can exchange 1 car for 5 motorcycles.In other countries,you can exchange 1 car for 4 motorcycles.These facts indicate that
A) other countries have an absolute advantage,relative to Isolani,in producing cars.
B) Isolani has a comparative advantage,relative to other countries,in producing cars.
C) if Isolani were to allow trade,it would import motorcycles.
D) the world price of motorcycles exceeds the price of motorcycles in Isolani.
Correct Answer:

Verified
Correct Answer:
Verified
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