8 QUESTION 8Alternate Outputs from One Day's Labor Input:USA: 12 bushels of wheat or 3 yards of textiles.India: 3 bushels of wheat or 12 yards of textiles.From the data, the USA:has an absolute advantage over India in theproduction of textiles.has an absolute advantage but notcomparative advantage over India in theproduction of wheat.has both an absolute advantage and acomparative advantage over India in theproduction of wheat.should export textiles to India.

Meaning of Opportunity Cost: The term opportunity cost refers to the situation under which the…

Alternate Outputs from One Day's Labor Input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA: O has an absolute advantage over India in the production of textiles. O has an absolute advantage but not comparative advantage over India in the production of wheat. O has both an absolute advantage and a comparative advantage over India in the production of wheat. O should export textiles to India.

Alternate Outputs from One Day's Labor Input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA: O has an absolute advantage over India in the production of textiles. O has an absolute advantage but not comparative advantage over India in the production of wheat. O has both an absolute advantage and a comparative advantage over India in the production of wheat. O should export textiles to India.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 1CQQ

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34. To obtain good A in which one does not have a comparative advantage, it is better to acquire it by "indirect production" – producing good B, in which one does have a comparative advantage, and trading it for good A. True False False
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