Say 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 24 units of food per year or 12 units of clothing.Which of the following is true?
A) Iceland has both a comparative and absolute advantage in producing food.
B) Iceland has a comparative advantage, but not an absolute advantage in producing food.
C) Lavaland has both a comparative and absolute advantage in producing clothing.
D) Lavaland has a comparative advantage, but not an absolute advantage in producing clothing.
E) None of the above are true.
Correct Answer:
Verified
Q50: If the United States could produce 4
Q67: Comparative advantage occurs when a person or
Q69: Iceland can produce 32 units of food
Q69: From which of the following countries does
Q70: Which of the following is correct?
A)U.S.International trade
Q71: Why would a new limit on trade
Q74: Iceland can produce 32 units of food
Q75: Iceland can produce 32 units of food
Q77: Which of the following is not a
Q143: Economists sometimes say that the current exchange
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