Suppose Two Countries Each Produce Wool and Cotton

question 103

Multiple Choice

Suppose two countries each produce wool and cotton.The country with the higher opportunity cost for cotton (in terms of wool) must also have

• A)a comparative advantage in the production of wool.
• B)a comparative advantage in the production of cotton.
• C)an absolute advantage in the production of wool.
• D)an absolute advantage in the production of cotton.
• E)an absolute advantage in the production of both wool and cotton.

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Definitions:

Calcaneus

The calcaneus, or heel bone, is a large bone in the foot that forms the foundation of the rear part of the foot and supports body weight.

Cuboid

A bone in the foot located between the calcaneus and the metatarsals, participating in stabilizing the foot arch.

Navicular

Refers to the navicular bone in the foot, involved in forming the arch of the foot, or the navicular bone in the wrist.

Medial Malleolus

The bony prominence on the inner side of the ankle, part of the tibia's distal extremity, contributing to the ankle joint's stability.