Multiple Choice
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. This suggests that
A) Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will export coffee.
B) Guatemala has a comparative advantage over other countries in the production of coffee, and Guatemala will import coffee.
C) other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will export coffee.
D) other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.
Correct Answer:
Verified
Correct Answer:
Verified
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