If Nation Z produces donuts at a higher opportunity cost than Nation A, which of the following is true? Nation Z must have an absolute advantage in producing donuts There is insufficient information to determine comparative and absolute advantage A C E Nation Z must have a comparative advantage in producing donuts Nation A-must have an absolute- advantage in producing donuts B D Nation A must have a comparative advantage in-producing donuts
If Nation Z produces donuts at a higher opportunity cost than Nation A, which of the following is true? Nation Z must have an absolute advantage in producing donuts There is insufficient information to determine comparative and absolute advantage A C E Nation Z must have a comparative advantage in producing donuts Nation A-must have an absolute- advantage in producing donuts B D Nation A must have a comparative advantage in-producing donuts
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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![If Nation Z produces donuts at a higher opportunity cost than Nation A, which of the following is true?
Nation Z must have an absolute
advantage in producing donuts
There is insufficient information to
determine comparative and absolute
advantage
A
C
E
Nation Z must have a comparative
advantage in producing donuts
Nation A-must have an absolute-
advantage in producing donuts
B
D
Nation A must have a comparative
advantage in-producing donuts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14e736a7-a1ac-4d9a-a05b-4c3b06afc4f4%2F692fa9f6-93a0-4b66-9afd-0aef6c64b991%2Fzgydsz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If Nation Z produces donuts at a higher opportunity cost than Nation A, which of the following is true?
Nation Z must have an absolute
advantage in producing donuts
There is insufficient information to
determine comparative and absolute
advantage
A
C
E
Nation Z must have a comparative
advantage in producing donuts
Nation A-must have an absolute-
advantage in producing donuts
B
D
Nation A must have a comparative
advantage in-producing donuts
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