-Refer to the Above Table

question 261

Multiple Choice

-Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?

• A)The United States has a comparative advantage in computers.
• B)The United States has a comparative advantage in bicycles.
• C)Mexico has a comparative advantage in computers.
• D)Mexico has a comparative advantage in both goods.

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Definitions:

Home Insurance

A type of insurance policy that provides coverage for damages or losses to an individual’s residence and possessions.

Pollution Abatement

Actions taken to reduce, control, or eliminate pollution from a given source.

Marginal Benefit

The enlarged happiness or benefit achieved from consuming an extra unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, emphasizing the variations in expenses as production scales.