Use the Table Below to Answer the Following Question

question 10

Multiple Choice

Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries. Which of the following statements is true?

• A)Redland has a comparative advantage in producing oats.
• B)Redland enjoys a comparative advantage in producing both products and could not gain from exchange.
• C)Redland should specialize in producing mutton and should trade for oats.
• D)In this example, Blueland has nothing to gain through trade with Redland.

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Definitions:

Direct-Response Wholesaling

A type of wholesaling where products are sold directly to retailers or consumers in response to specific requests or orders.

Television Home Shopping Channels

TV channels dedicated to retailing goods directly to consumers through live presentations, offering viewers the opportunity to purchase items from the comfort of their home.

QVC

A multinational corporation specializing in televised home shopping that broadcasts to millions of consumers worldwide.

HSN

Home Shopping Network, a television network that broadcasts live retail programming 24 hours a day.