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.
Correct Answer:
Verified
Q6: The price of a good that prevails
Q21: Assume,for the U.S.,that the domestic price of
Q22: Assume,for Canada,that the domestic price of wheat
Q23: Suppose England exports cars to Australia and
Q24: By comparing the world price of horseradish
Q26: Assume the nation of Cropland does not
Q27: Suppose Haiti has an absolute advantage over
Q28: If the world price of sugar is
Q29: The nation of Woodland forbids international trade.In
Q37: If a country is an exporter of
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