Given Freedom of Movement for Both Goods and Resources, If

question 125

Multiple Choice

Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that

• A) the opportunity cost of growing oranges is higher in Florida than in Georgia.
• B) Georgia has a comparative advantage in producing oranges.
• C) Florida has a comparative advantage in producing oranges.
• D) total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.

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