Which of the following statements is TRUE? Output per Day of Work Food Clothing Country A Country B 1 2 O Country A has an absolute advantage in making clothing. O Country B has an absolute advantage in making food. Country B has a comparative advantage in making food. Country A has a comparative advantage in making clothing. O Country A will import the item in which it has a comparative advantage.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
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Which of the following statements is TRUE?
Output per Day of Work
Food
Clothing
Country A
6.
3
Country B
1
Country A has an absolute advantage in making clothing.
Country B has an absolute advantage in making food.
Country B has a comparative advantage in making food.
Country A has a comparative advantage in making clothing.
O Country A will import the item in which it has a comparative advantage.
Transcribed Image Text:Which of the following statements is TRUE? Output per Day of Work Food Clothing Country A 6. 3 Country B 1 Country A has an absolute advantage in making clothing. Country B has an absolute advantage in making food. Country B has a comparative advantage in making food. Country A has a comparative advantage in making clothing. O Country A will import the item in which it has a comparative advantage.
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