Suppose that Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year,but Lavaland can produce 36 units of food per person per year or 18 units of clothing per person per year.Which of the following statements is the most accurate?
A) Lavaland has both an absolute and a comparative advantage in producing clothing.
B) Iceland has both an absolute and a comparative advantage in producing food.
C) Iceland has an absolute, but not a comparative advantage, in producing food.
D) Lavaland has an absolute, but not a comparative advantage, in producing clothing.
Correct Answer:
Verified
Q44: Suppose Canada could produce 4 tonnes of
Q45: Suppose an exporter has an upward-sloping supply
Q46: When markets reach the equilibrium price,all the
Q47: Suppose Canada could produce 4 tons of
Q48: According to international trade theory,which of the
Q50: Suppose that Iceland can produce 32 units
Q51: Suppose Edland can produce either 30 units
Q52: What is the difference between the price
Q53: Suppose Canada could produce 4 tonnes of
Q54: If Canada could produce 1 tonne of
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