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.
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.
Chapter28: International Trade
Section: Chapter Questions
Problem 2P
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