Use the following to answer questions:
-(Scenario: Countries A and B)Use Scenario: Countries A and B.Given this information,country _____ has a comparative advantage in the production of wheat,and country _____ has a comparative advantage in the production of steel.
A) A;A
B) A;B
C) B;B
D) B;A

Question

Use the following to answer questions: 
-(Scenario: Countries A and B)Use Scenario: Countries A and B.Given this information,country _____ has a comparative advantage in the production of wheat,and country _____ has a comparative advantage in the production of steel.
A) A;A 
B) A;B 
C) B;B 
D) B;A

Quizplus · Accepted Answer

According to the scenario, country A has a lower opportunity cost of producing wheat compared to country B, while country B has a lower opportunity cost of producing steel compared to country A. This indicates that country A has a comparative advantage in producing wheat, while country B has a comparative advantage in producing steel. Therefore, the correct choice is B.

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