Suppose Mexico Can Produce 5 Autos or 10 Corn

question 51

Multiple Choice

Suppose Mexico can produce 5 autos or 10 corn.Suppose the United States can produce 4 autos or 20 corn.If opportunity costs are constant for both countries,then

• A)the United States has a comparative advantage in corn production.
• B)Mexico has a comparative advantage in corn production.
• C)the United States cannot gain from trade with Mexico.
• D)the United States has a comparative advantage in auto production.

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Definitions:

Cost Reimbursable Contracts

A type of contract where the seller is paid for all legitimate costs incurred plus an additional fee as profit, which can be fixed or a percentage of costs.

Scope Of Work

The detailed description of the work to be performed in a project, including the project's objectives, deliverables, and timelines.

Costs For Performing

Expenses associated with executing specific tasks or operations in a project or business activity.

Procurement

The process of finding, acquiring, buying goods, services, or works from an external source, often via a tendering or competitive bidding process.