Use the Table Below to Answer the Following Question

question 151

Multiple Choice

Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries.
Which of the following statements is true?

• A) Redland has a comparative advantage in producing oats.
• B) Redland enjoys a comparative advantage in producing both products and could not gain from exchange.
• C) Redland should specialize in producing mutton and should trade for oats.
• D) In this example, Blueland has nothing to gain through trade with Redland.

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Definitions:

Securities

Financial instruments that represent either ownership (as in the case of equities) or a debt agreement (as in the case of bonds) with the individual or corporate entity that issues them.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.

Chairman

A person appointed or elected to preside over a meeting, board, or committee.

President

The head of state and head of government in a republic, typically elected to lead the country's executive branch and implement national laws and policies.