-Assuming That Opportunity Costs Are Constant, Which of the Following

question 257

Multiple Choice

-Assuming that opportunity costs are constant, which of the following is a correct statement? (See the above table.)

• A)The United States has a comparative advantage in bicycle production.
• B)The United States has a comparative advantage in producing both goods.
• C)Mexico has a comparative advantage in producing bicycles.
• D)Mexico has a comparative advantage in producing both goods.

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Definitions:

Scientific Methods

A systematic process for collecting data and generating knowledge that involves observation, experimentation, and analysis.

Subjective Inner Feelings

Refers to personal experiences of emotions and sensations that are not observable by others, representing a person's internal emotional state.

Anxious Feelings

Emotional states characterized by worry, nervousness, or unease about something with an uncertain outcome.

Observable

Capable of being seen, noticed, or measured directly or indirectly in a scientific or empirical manner.