The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 34.1
Refer to Table 34.1.Which of the following assumptions holds true for the example?
A) The goods are produced by using different factors of production
B) Labor productivity alone determines the comparative advantage
C) Each of the countries will produce and export wheat and cloth
D) Both the countries have identical factor endowments
E) The taste and preference of the consumers are dissimilar in the two countries
Correct Answer:
Verified
Q11: Nations trade what they produce in excess
Q15: According to Table 34.1, the opportunity cost
Q16: The table below shows units of wheat
Q17: The table below shows units of wheat
Q19: According to Table 34.1, the opportunity cost
Q21: The data in the table below assumes
Q22: The data in the table below assumes
Q23: The table below shows units of wheat
Q24: The following table shows the units of
Q25: Scenario 34.1 Suppose labor productivity differences are
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