Jamaica Has a Comparative Advantage in the Production of Aluminum,but

question 37

Multiple Choice

Jamaica has a comparative advantage in the production of aluminum,but currently allows no international trade in aluminum.We can conclude that

• A)​the domestic price of aluminum in Jamaica is higher than the world price for aluminum.
• B)​Jamaica has an absolute advantage in the production of aluminum.
• C)​Jamaica should import aluminum.
• D)​the domestic price of aluminum in Jamaica is lower than the world price for aluminum.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from a market transaction.

Equilibrium Price

A market condition where supply meets demand, and there is no inclination for price to change, leading to market balance.

Mutually Beneficial Trades

Exchanges that occur when all parties involved gain benefits or profits from the transaction.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trade.