If the Country of Zebina Has a Comparative Advantage in the Production

question 55

Multiple Choice

If the country of Zebina has a comparative advantage in the production of wheat over the country of Almia, then:

• A) the opportunity cost of producing wheat is higher in Zebina than in Almia.
• B) the opportunity cost of producing wheat is lower in Zebina than in Almia.
• C) neither Almia nor Zebina should specialize in the production of wheat.
• D) Zebina will export all of its wheat to Almia.

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Definitions:

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