This Table Shows the Hypothetical Effect of a Redeployment of Resources

question 11

Multiple Choice

This table shows the hypothetical effect of a redeployment of resources within the United States and the Arab countries for the production of oil and wheat.

-Which of the following can be inferred from the table?

• A) It costs the United States 5 billion barrels of oil for every 1 billion bushels of wheat.
• B) The Arab countries have an absolute advantage in both oil and wheat.
• C) It cost the Arabs 1 barrel of oil for every 0.10 bushel of wheat.
• D) The United States has a comparative advantage in both oil and wheat.
• E) It costs the United States 1 barrel of oil for every 1.25 bushels of wheat.

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