Use the Production Possibilities Data Below for Honduras and Nicaragua

question 94

Multiple Choice

Use the production possibilities data below for Honduras and Nicaragua to answer the following question(s) . Table 2-2
Refer to Table 2-2. Which of the following is correct?

• A) Honduras has the comparative advantage in both goods.
• B) Nicaragua has the comparative advantage in oranges.
• C) Honduras has the comparative advantage in oranges.
• D) It would be impossible for Honduras and Nicaragua to gain from trade.

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