The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour) .
According to Adam Smith,which of the following is true?
A) The United States has an absolute advantage in the production of wheat.
B) The United States has an absolute advantage in the production of cloth.
C) There is no basis for trade between these countries.
D) The United States will gain more from trade than the United Kingdom.
Correct Answer:
Verified
Q7: Which of the following is true?
A)Adam Smith
Q8: Based on Table 3.1,trade between the United
Q9: Why did Adam Smith criticize the trade
Q10: Based on Table 3.1,the pre-trade relative price
Q11: Based on Table 3.1,if the world price
Q13: Adam Smith created the theory of comparative
Q14: Based on Table 3.1,which country or countries
Q15: Mercantilists perceived trade as a zero sum
Q16: The economic philosophy that favors strict limits
Q17: What type of policies did Adam Smith
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