Suppose Canada could produce 1 tonne of potatoes or 0.5 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year.What country has the comparative advantage in producing wheat and the absolute advantage in producing potatoes?
A) Ireland has comparative advantage in wheat production, while Canada has absolute advantage in potato production.
B) Canada has both comparative advantage in wheat production and absolute advantage in potato production.
C) Ireland has both comparative advantage in wheat production and absolute advantage in potato production.
D) Canada has comparative advantage in wheat production, while Ireland has absolute advantage in potato production.
Correct Answer:
Verified
Q52: What is the difference between the price
Q53: Suppose Canada could produce 4 tonnes of
Q54: If Canada could produce 1 tonne of
Q55: Compared to the no-trade situation,what occurs when
Q56: Suppose that Iceland can produce 32 units
Q58: Assume that an exporter's supply curve of
Q59: Suppose that Iceland can produce 40 units
Q60: In order for mutually beneficial trade to
Q61: Compared to the no-trade situation,what occurs when
Q62: Which of the following would be expected
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents