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) None of the above are true.
Correct Answer:
Verified
Q40: If Japan does not have a comparative
Q41: Imposing a quota on metal softball bats
Q42: An import quota does which of the
Q43: If the United States could produce 4
Q44: According to international trade theory, a country
Q46: A crucial difference between the impact of
Q47: Which of the following is not a
Q48: Iceland can produce 32 units of food
Q49: Which of the following would increase prices
Q50: If the United States could produce 4
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