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The Nation of Fastbrooke Forbids International Trade

Question 25

Multiple Choice

The nation of Fastbrooke forbids international trade.In Fastbrooke,you can exchange 1 television for 3 computers.In other countries,you can exchange 1 television for 2 computers.These facts indicate that


A) other countries have an absolute advantage, relative to Fastbrooke, in producing televisions.
B) Fastbrooke has a comparative advantage, relative to other countries, in producing televisions.
C) if Fastbrooke were to allow trade, it would import computers.
D) the world price of computers exceeds the price of computers in Fastbrooke.

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