Table 18-2 Food 10 18 16 24 32 Italia Clothing 18 6 14 2 0 Food 10 4 18 12 16 Slavia Clothing 8 6 4 2 0 Refer to Table 18-2. The law of comparative advantage suggests that both countries could gain if Slavia traded food for clothing produced in Italia. neither country could gain from trade, even if the costs of transporting the products were zero. both countries could gain if Italia traded food for clothing produced in Slavia. Italia could not gain from trade because it has an absolute advantage in producing both goods.
Table 18-2 Food 10 18 16 24 32 Italia Clothing 18 6 14 2 0 Food 10 4 18 12 16 Slavia Clothing 8 6 4 2 0 Refer to Table 18-2. The law of comparative advantage suggests that both countries could gain if Slavia traded food for clothing produced in Italia. neither country could gain from trade, even if the costs of transporting the products were zero. both countries could gain if Italia traded food for clothing produced in Slavia. Italia could not gain from trade because it has an absolute advantage in producing both goods.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Table 18-2
Food
18
16
24
32
Italia
Clothing
8
2
0
Food
10
18
Slavia
Clothing
8
6
4
2
Refer to Table 18-2. The law of comparative advantage suggests that
both countries could gain if Slavia traded food for clothing produced in Italia.
neither country could gain from trade, even if the costs of transporting the products
were zero.
both countries could gain if Italia traded food for clothing produced in Slavia.
Italia could not gain from trade because it has an absolute advantage in producing
both goods.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91d62b80-5fed-46e2-b36a-c49903394ba0%2F740b9f63-27c3-418b-9bac-99b8b9f142a8%2F9jfdqz4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Table 18-2
Food
18
16
24
32
Italia
Clothing
8
2
0
Food
10
18
Slavia
Clothing
8
6
4
2
Refer to Table 18-2. The law of comparative advantage suggests that
both countries could gain if Slavia traded food for clothing produced in Italia.
neither country could gain from trade, even if the costs of transporting the products
were zero.
both countries could gain if Italia traded food for clothing produced in Slavia.
Italia could not gain from trade because it has an absolute advantage in producing
both goods.
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