Suppose That Argentina and Chile Are Both Engaged in the Production

question 63

Multiple Choice

Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a lower opportunity cost for producing copper, then:

• A) Chile has a comparative advantage in wheat production, but there will be no gains from specialisation and trade
• B) Chile has a comparative advantage in the production of copper, but it is outweighed by Argentina's absolute advantage in wheat production
• C) Argentina still has a comparative advantage in the production of both goods
• D) Chile has a comparative advantage in the production of copper, and specialisation and trade between the two countries can be mutually beneficial

---

Definitions:

Hillary Clinton

An American politician, diplomat, lawyer, writer, and public speaker who served as the 67th United States Secretary of State, U.S. senator from New York, and First Lady of the United States.

Global Media Relations

The practice of managing and fostering a positive relationship with the media across the world to ensure favorable coverage for an organization or individual.

Challenges

Difficult situations or obstacles that need to be overcome.

PR Experts

Professionals skilled in managing and improving the public image of individuals, organizations, or companies, through strategic communication.