If Colombia has a comparative advantage over Mexico in the production of coffee,then:
A) Colombia probably 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
Q6: If England buys hockey sticks from Canada,then:
A)
Q7: When two countries specialize and trade:
A) both
Q8: When each country specializes in producing the
Q9: The right decision about what to produce
Q10: Absolute advantage is the ability to produce:
A)
Q12: The increase in welfare in both countries
Q13: Gains from trade are the:
A) increase in
Q14: When trade is possible,each country can produce
Q15: If Spain sells soccer balls to the
Q16: If Japan has an absolute advantage over
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