Costa Rica can produce either 18 oranges or 9 watermelons a day, while Panama can prodace either 16 oranges or 4 watermelons a day. Refer to Scenario 14-2. Which of the following statements about Costa Rica and Panama is the most accurate? O a. If Costa Rica specializes in growing oranges and Panama specializes in growing watermelons, they could both gain by specialization and trade. O b. Costa Rica should export to Panama, but Panama should NOT export to Costa Rica. O c. Since Costa Rica has an absolute advantage in both goods, NO mutual gains are possible ym trade. O d. If Costa Rica specializes in growing watermelons and Panama specializes in growing oranges, they could both gain by specialization and trade.
Costa Rica can produce either 18 oranges or 9 watermelons a day, while Panama can prodace either 16 oranges or 4 watermelons a day. Refer to Scenario 14-2. Which of the following statements about Costa Rica and Panama is the most accurate? O a. If Costa Rica specializes in growing oranges and Panama specializes in growing watermelons, they could both gain by specialization and trade. O b. Costa Rica should export to Panama, but Panama should NOT export to Costa Rica. O c. Since Costa Rica has an absolute advantage in both goods, NO mutual gains are possible ym trade. O d. If Costa Rica specializes in growing watermelons and Panama specializes in growing oranges, they could both gain by specialization and trade.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter33: International Trade
Section: Chapter Questions
Problem 1WNG
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Transcribed Image Text:Costa Rica can produce either 18 oranges or 9 watermelons a day, while Panama can prodace either 16
oranges or 4 watermelons a day.
Refer to Scenario 14-2. Which of the following statements about Costa Rica and Panama is the most
accurate?
O a. If Costa Rica specializes in growing oranges and Panama specializes in growing watermelons,
they could both gain by specialization and trade.
O b. Costa Rica should export to Panama, but Panama should NOT export to Costa Rica.
O c. Since Costa Rica has an absolute advantage in both goods, NO mutual gains are possible yum
trade.
O d. If Costa Rica specializes in growing watermelons and Panama specializes in growing oranges,
they could both gain by specialization and trade.
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