Use the following to answer questions
Figure: Ships and Autos in Countries A and B
-(Figure: Ships and Autos in Countries A and B) Two countries manufacture automobiles and ships.Based on the graphs,which statement is correct?
A) Country A has a comparative disadvantage in producing ships.
B) The two countries should not trade with each other because they can produce both goods.
C) Country B has an absolute advantage in both goods because the line is closer to the origin.
D) Country A has an absolute advantage in producing ships.
Correct Answer:
Verified
Q181: Use the following to answer questions
Figure:
Q182: Suppose the country of Alphaland can produce
Q183: Paolo can walk three dogs or mow
Q185: To gain from trade,a country should:
A) always
Q187: The United States can grow wheat more
Q189: If a country has few resources:
A) trade
Q190: Use the following to answer questions
Figure:
Q191: Use the following to answer questions
Figure:
Q211: The law of comparative advantage suggests that
A)
Q238: International trade
A) increases consumer prices.
B) increases consumption
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