Exhibit 15-3 Potatoes and Wheat Output (Tons Per Day)

question 111

Multiple Choice

Exhibit 15-3 Potatoes and wheat output (tons per day) In Exhibit 15-3, the United States has a comparative advantage in producing:

• A)potatoes.
• B)wheat.
• C)both.
• D)neither.

---

Definitions:

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to a nation's economy.

Nominal Exchange Rate

The speed at which one form of currency can be traded for another.

Currency

A system of money in general use in a particular country or economic context.

Real Exchange Rate

The value of a currency in terms of another currency, adjusted for differences in price levels between countries.