If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A) Colombia likely sells coffee to Mexico.
B) Mexico is more productive at making coffee than Colombia.
C) Colombia has the ability to produce more coffee than Mexico with the same resources.
D) Mexico should trade coffee to Colombia.
Correct Answer:
Verified
Q2: If Japan has an absolute advantage over
Q3: When trade is possible, each country can
Q4: When each country specializes in producing the
Q5: Absolute advantage is the ability to produce:
A)more
Q6: Voluntary exchanges generate:
A)surplus, leaving both participants better
Q7: When a country has the ability to
Q8: When a country has the ability to
Q9: If Spain sells soccer balls to the
Q10: Which of the following is not an
Q11: Voluntary exchanges between _ generate surplus.
A)firms
B)countries
C)individuals
D)All of
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