Solved

Suppose the United States Exports Cars to Switzerland and Imports

Question 31

Multiple Choice

Suppose the United States exports cars to Switzerland and imports cheese from France.This situation suggests


A) the United States has a comparative advantage relative to France in producing cheese, and Switzerland has a comparative advantage to the United States in producing cars.
B) the United States has a comparative advantage relative to Switzerland in producing cars, and France has a comparative advantage relative to the United States in producing cheese.
C) the United States has an absolute advantage relative to Switzerland in producing cars, and France has an absolute advantage relative to the United States in producing cheese.
D) the United States has an absolute advantage relative to France in producing cheese, and Switzerland has an absolute advantage relative to the United States in producing cars.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents