Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s).
Table 2-2

-Refer to Table 2-2. Which of the following is correct?
A) Honduras has the comparative advantage in both goods.
B) Nicaragua has the comparative advantage in oranges.
C) Honduras has the comparative advantage in oranges.
D) It would be impossible for Honduras and Nicaragua to gain from trade.

Question

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s).
Table 2-2
 
-Refer to Table 2-2. Which of the following is correct?
A) Honduras has the comparative advantage in both goods. 
B) Nicaragua has the comparative advantage in oranges. 
C) Honduras has the comparative advantage in oranges. 
D) It would be impossible for Honduras and Nicaragua to gain from trade.

Quizplus · Accepted Answer

The Answer of Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s).
Table 2-2
 
-Refer to Table 2-2. Which of the following is correct?
A) Honduras has the comparative advantage in both goods. 
B) Nicaragua has the comparative advantage in oranges. 
C) Honduras has the comparative advantage in oranges. 
D) It would be impossible for Honduras and Nicaragua to gain from trade.

Use the Production Possibilities Data Below for Honduras and Nicaragua