A given unit of resource inputs produces 400 tons of corn or 200 tons of soybeans in nation A, and 300 tons of corn or 100 tons of soybeans in nation B. Which of the following is correct?
A) The domestic opportunity cost of corn is lower in nation A than in nation B.
B) Nation A has a comparative advantage in soybeans.
C) There are no gains from trade between nation A and nation B.
D) The terms of trade favor nation A.
Correct Answer:
Verified
Q2: Nation A pays lower wages to workers
Q3: The production possibilities for Country X are
Q4: Countries A and B produce only rubber
Q5: The table below shows points from straight-line
Q6: The production possibilities table given below shows
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