Figure 9-2

-Refer to Figure 9-2.This country
A) has a comparative advantage in baskets.
B) should export baskets.
C) is a price taker in the world economy.
D) All of the above are correct.

Question

Figure 9-2
 
-Refer to Figure 9-2.This country
A) has a comparative advantage in baskets. 
B) should export baskets. 
C) is a price taker in the world economy. 
D) All of the above are correct.

Quizplus · Accepted Answer

The country in Figure 9-2 has a lower opportunity cost of producing baskets compared to computers, indicating a comparative advantage in producing baskets. Therefore, it should export baskets, making it a price taker in the world economy. All of these statements are correct.

Figure 9-2 -Refer to Figure 9-2.This Country