Figure 16-6 -According to Figure 16-6,which of the Following Statements Is Correct

question 53

Multiple Choice

Figure 16-6

-According to Figure 16-6,which of the following statements is correct?

• A)Chile has the both the absolute and comparative advantage in the production of bicycles.
• B)India has both the absolute and comparative advantage in the production of bicycles.
• C)Chile has the absolute advantage in the production of wagons but India has the comparative advantage.
• D)India has the absolute advantage in the production of bicycles but Chile has the comparative advantage.
• E)India has the absolute advantage in the production of wagons but Chile has the comparative advantage.

---

Definitions:

Corporate Stock

Shares representing ownership in a corporation, giving shareholders a claim on part of the company's assets and earnings.

Credit Card

A financial instrument that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services.

Money Supply

The entire sum of monetary holdings accessible in an economy at a certain period.

Travelers Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make payments or exchange for local currency, used mainly by travelers to protect against theft or loss.