Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 36 units of food per year or 18 units of clothing. Which of the following is true?
A) Georgeland has an absolute but not a comparative advantage in producing clothing.
B) Georgeland has both an absolute and a comparative advantage in producing clothing.
C) Alland has an absolute but not a comparative advantage in producing food.
D) Alland has both an absolute and a comparative advantage in producing food.
Correct Answer:
Verified
Q16: Alternate Outputs from One Day's Labor Input:
USA:
Q17: The theory of comparative advantage shows that
Q18: The slope of the production possibility frontier
Q19: The concept of _ means that as
Q20: The idea behind comparative advantage reflects the
Q22: Alpha can produce either 18 oranges or
Q23: As measured in 2008, about _ of
Q24: International trade currently involves about _ worth
Q25: Say that Alland can produce 32 units
Q26: Trade allows each country to take advantage
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