This table shows the hypothetical effect of a redeployment of resources within the United States and the Arab countries for the production of oil and wheat.

-Which of the following can be inferred from the table?
A) It costs the United States 5 billion barrels of oil for every 1 billion bushels of wheat.
B) The Arab countries have an absolute advantage in both oil and wheat.
C) It cost the Arabs 1 barrel of oil for every 0.10 bushel of wheat.
D) The United States has a comparative advantage in both oil and wheat.
E) It costs the United States 1 barrel of oil for every 1.25 bushels of wheat.

Question

This table shows the hypothetical effect of a redeployment of resources within the United States and the Arab countries for the production of oil and wheat.
 
-Which of the following can be inferred from the table?
A) It costs the United States 5 billion barrels of oil for every 1 billion bushels of wheat. 
B) The Arab countries have an absolute advantage in both oil and wheat. 
C) It cost the Arabs 1 barrel of oil for every 0.10 bushel of wheat. 
D) The United States has a comparative advantage in both oil and wheat. 
E) It costs the United States 1 barrel of oil for every 1.25 bushels of wheat.

Quizplus · Accepted Answer

The Answer is C

This Table Shows the Hypothetical Effect of a Redeployment of Resources