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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