Chechinko, an African country, and Herito, an Asian country, use the same amount of resources to produce alcohol. Despite this, Chechinko is able to manufacture a higher quantity of alcohol than Herito. In this context, which of the following statements is definitely true of Chechinko?
A) Chechinko has a higher trade surplus than Herito.
B) Chechinko enjoys an absolute advantage in terms of alcohol production, relative to Herito.
C) Chechinko has a higher balance of trade than Herito.
D) Chechinko can produce alcohol at a lower opportunity cost compared to Herito.
Correct Answer:
Verified
Q55: Which of the following countries most likely
Q56: Openi, an island nation, is able to
Q57: Nersina, a European country, exports petroleum and
Q58: Ithilium, a European country, is able to
Q59: When a country produces more of one
Q61: In the context of global trade, a
Q62: Who among the following is most likely
Q63: In the fiscal year 2015-2016, Nescarto, an
Q64: Which of the following countries is involved
Q65: Nipennie and Mirasa, two developing countries, bartered
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents