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The Nation of Falconia Forbids International Trade

Question 3

Multiple Choice

The nation of Falconia forbids international trade.In Falconia,you can obtain a computer by trading 3 bicycles.In other countries,you can obtain a computer by trading 5 bicycles.These facts indicate that


A) if Falconia were to allow trade, it would export computers.
B) Falconia has an absolute advantage, relative to other countries, in producing computers.
C) Falconia has a comparative advantage, relative to other countries, in producing bicycles.
D) All of the above are correct.

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