Business, 09.07.2020 02:01 zeckwielen3398
Suppose that Country A has 200 workers and Country B has 100 workers. Given their workforce, Country A can produce 200 bushels of corn or 800 barrels of maple syrup. Similarly, with their workforce, Country B can produce 250 bushels of corn or 500 barrels of maple syrup. Suppose the two countries trade with each other. Which of the following are true?
I. Country A has an absolute advantage in maple syrup.
II. Country B has an absolute advantage in maple syrup.
III. Country A specializes in corn.
IV. Country B specializes in corn.
A. I and III.
B. I and IV.
C. II and III.
D. II and IV.
Answers: 2
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Suppose that Country A has 200 workers and Country B has 100 workers. Given their workforce, Country...
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