Egypt Has a Comparative Advantage in the Production of Linen

question 53

Multiple Choice

Egypt has a comparative advantage in the production of linen and an absolute advantage in the production of beer, compared to Russia. If these two countries decide to trade, what would the pattern of trade be?

• A) Egypt would export linen to Russia.
• B) Russia would export linen to Egypt.
• C) Egypt would export both beer and linen to Russia.
• D) Russia would export both beer and linen to Egypt.

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Definitions:

Components

Components are parts or elements that make up a whole system, machine, or structure.

Connective

A word or phrase in logic that connects propositions, such as "and," "or," "if...then," indicating the relationship between them.

Consistent

In a logical sense, a set of statements is consistent if they can all be true at the same time; more generally, acting or done in the same way over time.

Truth Tables

A table used in logic to determine the truth value of a compound statement based on the truth values of its components.