Sloimekia Is Able to Produce More of a Particular Variety

question 27

Multiple Choice

Sloimekia is able to produce more of a particular variety of cloth than its neighboring countries. Sloimekia and its neighboring countries have the same amount of resources for producing this particular cloth. In this case, which of the following is definitely true of Sloimekia?

• A)Sloimekia has a higher trade surplus than its neighboring countries.
• B)Sloimekia enjoys an absolute advantage in producing this particular cloth.
• C)Sloimekia enjoys the highest balance of trade among its neighboring countries.
• D)Sloimekia has a lower balance of payments and a lower trade deficit.

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